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7 March 2013
Lower Brule Man Pleads Guilty to AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that Elmer LaRoche, age 26, of Lower Brule, South Dakota appeared before U.S. District Judge Roberto A. Lange on March 6, 2013 and pled guilty to the Superseding Information that charged him with Assaulting, Resisting and Impeding a Federal Officer. The maximum penalty upon conviction is 8 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release; an additional 2 years of supervised release upon revocation; and $100 to the Victim Assistance Fund. Restitution may be imposed.
The charge stems from an incident on or about the 1st day of November, 2012, wherein LaRoche assaulted, resisted, opposed, impeded, intimidated and interfered with an officer while the officer was engaged in the performance of his official duties and was employed as a federal law enforcement officer with the Bureau of Indian Affairs. An intoxicated LaRoche was at a home in Lower Brule, and refused to leave the house where a tribal court order had been posted regarding no intoxicated persons were to enter the house. During his arrest, LaRoche resisted and struggled with the officer causing physical contact. LaRoche struck the officer in the head.
The investigation was conducted by the Bureau of Indian Affairs and Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case. LaRoche was remanded to the custody of the U.S. Marshal pending sentencing. A sentencing date has been set for May 29, 2013.
Louisiana Tax Return Preparer Convicted of Stolen Identity Refund FraudRead the Press Release
Following a four-day jury trial in Baton Rouge, La., a federal jury convicted Angela Myers today of wire fraud, making false claims, subscribing to false tax returns and aggravated identity theft, the Justice Department and Internal Revenue Service (IRS) announced.
Based on the evidence presented at trial, Myers operated “Angie’s Tax Service,” a tax preparation business located in Baton Rouge. Myers electronically filed false claims for tax refunds using the names and Social Security numbers of identity theft victims. Myers filed the identity theft tax returns using a unique preparer identification number assigned to her daughter. Many of the victims were nursing home patients who resided at Port Allen Care Center in Port Allen, La., and who did not have the ability to leave the nursing home.
The evidence also revealed that Myers lied on her own 2007 and 2008 federal income tax returns, failing to report hundreds of thousands of dollars of tax preparation fees that she earned at Angie’s Tax Service and used to buy various items, including an RV and a $50,000 investment product.
“Prosecuting stolen identity refund fraud is a top priority of the Justice Department,” said Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally. “The verdicts returned today demonstrate that the American people will not tolerate criminals who prey on the most vulnerable in our society to enrich themselves.”
“Identity theft is a very serious crime that victimizes honest taxpayers and causes immense hardship,” stated Richard Weber, Chief, IRS Criminal Investigation. “Many of Myers’ victims were nursing home patients. Be assured that IRS has made a commitment to pursue identity theft and we will work tirelessly with our partners at the U.S. Attorney’s Office to hold those who engage in similar conduct accountable.”
Assistant Attorney General Keneally commended the efforts of special agents of IRS - Criminal Investigation, who investigated the case, and Trial Attorneys Justin Gelfand and Jason Poole, who prosecuted the case with the assistance of the U.S. Attorney’s Office for the Middle District of Louisiana.
Lincoln Man Sentenced for Conspiracy to Distribute Methamphetamine and CocaineRead the Press Release
United States Attorney Deborah R. Gilg announced that on March 7, 2013, Martin Daniel Sanchez Martinez, age 21 of Lincoln, was sentenced to four years and nine months (57 months) in federal prison for his involvement in a conspiracy to distribute and possess with intent to distribute methamphetamine and cocaine between July of 2011 and April of 2012. Information provided to law enforcement indicated that Montoya was responsible for the distribution of at least 50 grams of methamphetamine mixture, at least 35 grams of actual methamphetamine, and less than 25 grams of cocaine during that time frame in the Lincoln area. On 13 occasions between December of 2011 and April of 2012, Martin Daniel Sanchez Martinez delivered methamphetamine and/or cocaine to an undercover Lincoln Police officer.
Following the prison term, Martinez will serve three years on supervised release.
The matter was investigated by the Lincoln/Lancaster County Narcotics Task Force, which includes officers of the Lincoln Police Department, the Lancaster County Sheriff=s Department, the Federal Bureau of Investigation, (FBI), and the University of Nebraska-Lincoln Police Department.Laredo Police Officer Enters Guilty Plea to Deprivation of Civil RightsRead the Press Release
LAREDO, Texas – Frank Carter, 43, a former officer Laredo Police Department (LPD), has entered a guilty plea today in federal court to violating the civil rights of an arrestee, United States Attorney Kenneth Magidson announced today along with Assistant Attorney General for the Civil Rights Division Thomas E. Perez.
“Mr. Carter has admitted that he used unjustified and unlawful force against a handcuffed arrestee,” said Perez. “The Justice Department will continue to prosecute law enforcement officers who violate the constitutional rights of individuals in their custody.”
Carter entered the guilty plea before U.S. District Judge Diana Saldana today. Carter admitted that on May 26, 2012, while using his authority as a LPD officer, he struck a male victim who was handcuffed and detained in the backseat of Carter’s patrol car. Carter admitted he struck the victim several times.
According to information presented in court, rear facing dash camera audio and video recordings revealed Carter had yelled obscenities at the victim while he punched the victim in the head and body. Carter also repeatedly slammed the victim’s face into the back of the seat. The victim remained handcuffed during the entire incident and never resisted or attempted to harm Carter.
Judge Saldana has ordered a presentence report to be due April 11, 2013, at which time she will set sentencing date and decide whether to accept the guilty plea Carter entered today. If she accepts the plea, Carter will face a maximum of 10 years in prison. He was permitted to remain on bond pending that hearing.This case was investigated by the FBI and Texas Rangers. Assistant United States Attorney Ruben R. Perez and Civil Rights Division Trial Attorneys Ryan Murguia and Christopher Lomax are prosecuting the case.
Justin Worley Pleads Guilty to Nine Counts of Bank RobberyRead the Press Release
PROVIDENCE, R.I. – Justin L. Worley, 34, pleaded guilty in U.S. District Court in Providence today to nine counts of bank robbery, announced United States Attorney Peter F. Neronha.
Appearing before U.S. District Court Judge William E. Smith, Worley admitted to the court that he robbed eight financial institutions in Rhode Island between April 16, 2012, and September 18, 2012, and that he robbed one financial institution in Seekonk, Mass., on February 23, 2012. Worley admitted that he robbed the banks of a total of $32,633.
Worley was arrested at a motel in Seekonk on September 19, 2012, by East Providence, R.I., and Seekonk police.
The robberies were investigated by the Barrington, Cranston, East Providence, North Providence, Pawtucket, Seekonk and Warwick Police Departments and the FBI.
Worley is scheduled to be sentenced on May 24, 2013. The maximum statutory penalty for bank robbery is 20 years in federal prison; a fine of up to $250,000; and a term of supervised release of 3 years.
Worley has been detained in federal custody since November 15, 2012.
The case is being prosecuted by Assistant U.S. Attorneys William J. Ferland and Paul F. Daly, Jr.
Contact: 401-709-5357
[email protected]Jury Convicts Tax ProtesterRead the Press Release
Former Owner and President of Gladstone Engineering Firm Convicted of Tax ChargesPortland, Ore. — A federal jury today convicted Chester Evans Davis, 56, of Oregon City, of five counts of tax evasion, four counts of failure to file a corporate tax return, and one count of obstructing the internal revenue laws. Davis is the former owner and president of ESA International (formerly ESA NW, Inc.), a Gladstone engineering firm specializing in power system software.
“This verdict shows that wealthy business owners have to pay taxes, just like hard-working people do every day,” said U.S. Attorney S. Amanda Marshall. “Evading taxes and obstructing the IRS are serious crimes with serious consequences.”
The government presented evidence during the four-day jury trial that Davis evaded payment of his federal income taxes for tax years 1999, 2000, and 2001, and evaded assessment of his federal income taxes for tax years 2007, 2008, 2009, and 2010. Davis’ company, ESA NW, Inc., earned millions of dollars in annual revenue, including revenue from federal government agencies such as the Army Corps of Engineers and Bonneville Power Administration. Davis transferred money from his company to various shell corporations and a warehouse bank, and then used the money to purchase more than $5 million in gold bars and coins. Special Agents with the Internal Revenue Service - Criminal Investigation seized over $1 million of that gold, as well as approximately $115,000 in cash, while executing search warrants at Davis’ residence and business. Davis also failed to file corporate returns for ESA NW, Inc., and obstructed the Internal Revenue Service by filing bogus Forms 1099-OID with the IRS. The government presented evidence that Davis currently owes approximately $5 million in state and federal personal income taxes.
The maximum penalty for each count of tax evasion is five years imprisonment and a $100,000 fine; the maximum penalty for obstructing the internal revenue laws is three years imprisonment and $25,000 fine; and the maximum penalty for failure to file tax returns is one year imprisonment and a $5,000 fine.
This case stemmed from an investigation by the Internal Revenue Service - Criminal Investigation. The case was prosecuted by Assistant U.S. Attorneys Craig Gabriel and Stacie Beckerman.
Jose Transito Lopez Pleads Guilty to Illegal Re-entryRead the Press Release
JOSE TRANSITO LOPEZ, age 33, a citizen of Honduras, pled guilty in federal court today before U. S. District Judge Jane Triche Milazzo to a one-count indictment charging him with illegal re-entry by a removed alien, announced U. S. Attorney Dana Boente.
According to court documents, LOPEZ admitted to being an alien who had previously been removed from the United States, was found in the United States, in Jefferson Parish, Louisiana on November 14, 2012, without having obtained consent from the Secretary of the Department of Homeland Security to reapply for admission to the United States. LOPEZ further admitted that he was convicted of delivery of cocaine in Texas prior to his removal.
The indictment charging LOPEZ with illegal re-entry also included a notice of sentencing enhancement based on his prior aggravated felony conviction. With the enhancement, the charge carries a maximum statutory penalty of twenty years imprisonment, a fine of $250,000, and three years of supervised release following any term of imprisonment. Sentencing for LOPEZ is scheduled for June 13, 2013 at 10:00 A.M.
The case was investigated by U. S. Immigration and Customs Enforcement (ICE) - Enforcement and Removal Operations and the Jefferson Parish Sheriff’s Office as part of the Criminal Alien Removal Initiative. The case is being prosecuted by Special Assistant U. S. Attorney Robert Weir.
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Hollywood Man Sentenced to 16 Years in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), Miami Field Office, and Steven Steinberg, Chief, Aventura Police Department (Aventura PD), announce the sentencing of defendant Jonathan Torres-Bonilla, 36, of Hollywood. Torres-Bonilla was sentenced to 16 years in prison, to be followed by 3 years of supervised release. The defendant was also ordered to pay $100,388.01 in restitution to the Internal Revenue Service.
On December 27, 2012, defendant Torres was convicted at trial of all six counts in the indictment against him. Specifically, Torres was convicted of two counts of access device fraud, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1029(a)(3), and four counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1), in connection with an identity theft tax refund fraud scheme.
According to testimony and evidence presented at trial, the defendant had been observed by plain-clothes Aventura police officers at the Aventura Mall using multiple debit cards at multiple different ATMs on November 25, 2011. Aventura police officers followed the defendant to the mall garage, where he tried to flee in a minivan. The defendant was arrested when he refused to provide identification. The officers then searched the defendant and his car and found 28 pre-paid debit cards (loaded with $117,000 in tax refunds), dozens of ATM receipts, and more than $1,700 in cash. At sentencing, the defendant was found to have obstructed justice by lying during his testimony at trial.
Mr. Ferrer commended the efforts of IRS-CID and Aventura PD for their work on the case. The case was prosecuted by Assistant U.S. Attorney Michael N. Berger.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Health Care Clinic Director Pleads Guilty in Miami for Role in $63 Million Health Care Fraud SchemeRead the Press Release
A former health care clinic director and licensed therapist pleaded guilty today in connection with a health care fraud scheme involving defunct health provider Health Care Solutions Network Inc. (HCSN), announced Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Special Agent in Charge of the FBI's Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
Paul Thomas Layman, 66, of Miami, pleaded guilty before U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida to one count of conspiracy to commit health care fraud.
Layman’s co-conspirator Dana Gonzalez, 43, of Miami, a registered clinical social worker intern in Florida, pleaded guilty yesterday to one count of conspiracy to commit health care fraud for her role in the scheme.
During the course of the conspiracy, Layman was employed as a substance abuse counselor, therapist and clinical director of HCSN’s Partial Hospitalization Program (PHP). A PHP is a form of intensive treatment for severe mental illness.
In Florida, HCSN operated community mental health centers at three locations. During his employment, Layman worked full time at all HCSN locations in Florida in various capacities. According to court documents, Layman was aware that HCSN in Florida paid illegal kickbacks to owners and operators of Miami-Dade County Assisted Living Facilities (ALF) in exchange for patient referral information to be used to submit false and fraudulent claims to Medicare and Medicaid. Layman also knew that many of the ALF referral patients were ineligible for PHP services because many patients suffered from mental retardation, dementia and Alzheimer's disease.Court documents reveal that Layman was aware that HCSN personnel in Florida were fabricating patient medical records. Many of these medical records were created weeks or months after the patients were admitted to HCSN facilities in Florida for purported PHP treatment and were utilized to support false and fraudulent billing to government sponsored health care benefit programs, including Medicare and Florida Medicaid. During his employment at HCSN in Florida, Layman signed fabricated PHP therapy notes and other medical records used to support false claims to government sponsored health care programs.
HCSN also operated one location in Hendersonville, N.C. At the Hendersonville location, Layman served as the clinical director and assisted HCSN owner Armando Gonzalez in obtaining necessary licensing, credentials and Medicare authorizations for HCSN. According to court documents, from 2008 through 2009, Layman purportedly supervised therapists at HCSN in Hendersonville, including Alexandra Haynes, who was an unlicensed therapist purportedly performing PHP therapy to HCSN patients. For their roles in the conspiracy, Gonzalez pleaded guilty to one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering, and Haynes pleaded guilty to one count of conspiracy to commit health care fraud. On Monday, Feb. 25, 2013, Gonzalez was sentenced to serve 168 months in prison for his role in the scheme.
According to court documents, Dana Gonzalez worked at HCSN in Florida from approximately April 2005 through December 2010. At HCSN in Florida, Gonzalez fabricated patient medical records, which were used to support false and fraudulent billing to Medicare and Florida Medicaid. In 2011, Gonzalez worked at HCSN in North Carolina, where she fabricated therapy notes and medical records, and provided unlicensed therapy when licensed therapists were absent.
According to court documents, from 2004 through 2011, HCSN billed Medicare and the Florida Medicaid program approximately $63 million for purported mental health services.
Fifteen defendants have been charged for their alleged roles in the HCSN health care fraud scheme, and 12 defendants have pleaded guilty. Alleged co-conspirator Wondera Eason is scheduled for trial on April 22, 2013, before Judge Altonaga in Miami. Alleged co-conspirators Alina Feas and Lisset Palmero are scheduled for trial on June 3, 2013. Defendants are presumed innocent until proven guilty at trial.
The cases are being prosecuted by Special Trial Attorney William Parente and Trial Attorneys Allan J. Medina and Steven Kim of the Criminal Division's Fraud Section. This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division's Fraud Section and the U.S. Attorney's Office for the Southern District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Health Care Clinic Director Pleads Guilty in Miami for Role in $63 Million Health Care Fraud SchemeRead the Press Release
A former health care clinic director and licensed therapist pleaded guilty today in connection with a health care fraud scheme involving defunct health provider Health Care Solutions Network Inc. (HCSN), announced U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; Michael B. Steinbach, Special Agent in Charge of the FBI’s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office.
Paul Thomas Layman, 66, of Miami, pleaded guilty before U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida to one count of conspiracy to commit health care fraud.
Layman’s co-conspirator Dana Gonzalez, 43, of Miami, a registered clinical social worker intern in Florida, pleaded guilty yesterday to one count of conspiracy to commit health care fraud for her role in the scheme.
During the course of the conspiracy, Layman was employed as a substance abuse counselor, therapist and clinical director of HCSN’s Partial Hospitalization Program (PHP). A PHP is a form of intensive treatment for severe mental illness.
In Florida, HCSN operated community mental health centers at three locations. During his employment, Layman worked full time at all HCSN locations in Florida in various capacities. According to court documents, Layman was aware that HCSN in Florida paid illegal kickbacks to owners and operators of Miami-Dade County Assisted Living Facilities (ALF) in exchange for patient referral information to be used to submit false and fraudulent claims to Medicare and Medicaid. Layman also knew that many of the ALF referral patients were ineligible for PHP services because many patients suffered from mental retardation, dementia and Alzheimer's disease.
Court documents reveal that Layman was aware that HCSN personnel in Florida were fabricating patient medical records. Many of these medical records were created weeks or months after the patients were admitted to HCSN facilities in Florida for purported PHP treatment and were utilized to support false and fraudulent billing to government sponsored health care benefit programs, including Medicare and Florida Medicaid. During his employment at HCSN in Florida, Layman signed fabricated PHP therapy notes and other medical records used to support false claims to government sponsored health care programs.
HCSN also operated one location in Hendersonville, N.C. At the Hendersonville location, Layman served as the clinical director and assisted HCSN owner Armando Gonzalez in obtaining necessary licensing, credentials and Medicare authorizations for HCSN. According to court documents, from 2008 through 2009, Layman purportedly supervised therapists at HCSN in Hendersonville, including Alexandra Haynes, who was an unlicensed therapist purportedly performing PHP therapy to HCSN patients. For their roles in the conspiracy, Gonzalez pleaded guilty to one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering, and Haynes pleaded guilty to one count of conspiracy to commit health care fraud. On Monday, Feb. 25, 2013, Gonzalez was sentenced to serve 168 months in prison for his role in the scheme.
According to court documents, Dana Gonzalez worked at HCSN in Florida from approximately April 2005 through December 2010. At HCSN in Florida, Gonzalez fabricated patient medical records, which were used to support false and fraudulent billing to Medicare and Florida Medicaid. In 2011, Gonzalez worked at HCSN in North Carolina, where she fabricated therapy notes and medical records, and provided unlicensed therapy when licensed therapists were absent.
According to court documents, from 2004 through 2011, HCSN billed Medicare and the Florida Medicaid program approximately $63 million for purported mental health services.
Fifteen defendants have been charged for their alleged roles in the HCSN health care fraud scheme, and 12 defendants have pleaded guilty. Alleged co-conspirator Wondera Eason is scheduled for trial on April 22, 2013, before Judge Altonaga in Miami. Alleged co-conspirators Alina Feas and Lisset Palmero are scheduled for trial on June 3, 2013. Defendants are presumed innocent until proven guilty at trial.
The cases are being prosecuted by Special Trial Attorney William Parente and Trial Attorneys Allan J. Medina and Steven Kim of the Criminal Division's Fraud Section. This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division's Fraud Section and the U.S. Attorney's Office for the Southern District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Hartford Crack Dealer Sentenced to More Than 10 Years in Federal PrisonRead the Press Release
March 7, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that JAYQUAN FANIEL, 28, of Hartford, was sentenced today by United States District Judge Janet C. Hall in New Haven to 126 months of imprisonment, followed by eight years of supervised release, for distributing crack cocaine and for violating the conditions of his supervised release from a previous federal conviction.
This matter stems from “Operation Vinefield,” a joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force targeting narcotics trafficking and gang violence in Hartford’s North End. As a result of the nine-month investigation, 38 individuals were charged with various offenses related to the distribution of crack cocaine and the unlawful possession and dealing of firearms in and around Hartford.
According to court documents and statements made in court, on April 23, 2012, an individual working with law enforcement purchased approximately 3.5 grams of crack cocaine from FANIEL at FANIEL’s Garden Street residence. On April 27, 2012, investigators conducted a court-authorized search of the residence and recovered approximately 148 grams of crack cocaine, a digital scale, $1889 in cash and a loaded 9mm semi-automatic pistol.
FANIEL has been detained since his arrest on April 27, 2012. On October 9, 2012, he pleaded guilty to one count of possession with intent to distribute 28 grams or more of cocaine base (“crack cocaine”).
FANIEL’s criminal history includes a federal conviction in 2005 related to his distribution of crack cocaine in Hartford for which he received a 60-month sentence. He was released from prison in 2009 and was serving a term of supervised release at the time of this most recent offense.
Judge Hall sentenced FANIEL to 120 months for distributing crack cocaine, and a consecutive six-month sentence for violating the conditions of his supervised release.
This matter has been investigated by the FBI’s Northern Connecticut Violent Crimes Task Force, the Connecticut State Police, the Hartford Police Department, and the Connecticut Department of Correction. The case is being prosecuted by Assistant United States Attorney Brian P. Leaming.
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(203) 821-3722 [email protected]Four Face Federal Charges of Methamphetamine Manufacturing and DistributionRead the Press Release
Lead Defendant Considered Knox County’s ‘Most Wanted’
Galesburg, Ill. – A grand jury has charged a Galesburg, Ill., man, Steven M. Cramer, 49, and three others, with a single count of conspiracy to manufacture and distribute methamphetamine over the past four years. Cramer, of the 800 block of Abingdon Street, is charged, along with Amanda Jo Davis, 31, of the 100 block of Arthur Street; Lloyd L. Bell, 45, of the 1300 block of Rona Drive; and Jeremy N. Epperson, 38, of the 1000 block of Lyman Street, Galesburg, Ill.
The grand jury returned the indictment on Feb. 21; however, the indictment remained sealed pending the defendants’ arrests and initial appearances in federal court in Peoria. Cramer was previously arrested and charged in state court. Davis was taken into law enforcement custody on Mar. 3; Bell and Epperson were arrested on Mar. 1. The defendants appeared on Monday, before U.S. Magistrate Judge John A. Gorman. Cramer, Bell, and Epperson were ordered to remain detained in the custody of the U.S. Marshals Service; Davis was released on a recognizance bond. Trial is scheduled on Apr. 15, 2013, before Senior U.S. District Judge Michael M. Mihm.
Jim Lewis, U.S. Attorney for the Central District of Illinois, today joined Knox County Sheriff David Clague; Knox County State’s Attorney John Pepmeyer; Galesburg Police Chief David Christensen; Rene Sandoval, Director of the Multi-county Narcotic Enforcement Group, known as PMEG; and Illinois State Police, to announce the indictment. The case is being prosecuted in federal court by Assistant U.S. Attorney Tate Chambers.
The indictment alleges that Cramer, identified in January 2013 by Knox County law enforcement as its ‘most wanted’ violent offender, conspired with Davis, Bell and Epperson, and others, to manufacture and distribute methamphetamine in Knox County. The indictment charges the four with participating in the conspiracy over a four-year period, beginning in or about January 2009 and continuing to January 2013, and involving more than 500 grams of methamphetamine.
If convicted, the penalty for the offense carries a statutory mandatory minimum penalty of 10 years to life in prison. If a defendant has one prior felony drug conviction, the mandatory minimum penalty is enhanced to 20 years to life in prison. With two or more prior felony drug convictions, the statutory penalty is life in prison without parole.
Members of the public are reminded that an indictment is merely an accusation; the defendants are presumed innocent unless proven guilty.
Four Convicted in ‘Sovereign Citizen’ InvestigationRead the Press Release
An investigation into the criminal conduct of members of the so-called ‘Sovereign Citizen’ movement has resulted in four defendants being convicted by juries in U.S. District Court in Tacoma, announced U.S. Attorney Jenny A. Durkan. The jury deliberated for five hours before convicting RAYMOND LEO JARLIK BELL and UTE CHRISTINE JARLIK BELL of four counts of filing false, fictitious and fraudulent claims. RAYMOND LEO JARLIK BELL was also convicted of 15 counts of assisting in filing false tax returns, three counts of mail fraud, and one count of obstruction of justice. Judge Ronald B. Leighton scheduled sentencing for the couple from Yelm, Washington on June 14, 2013.
Just last week, two other co-conspirators in a related case were convicted of federal charges for their criminal conduct. KENNETH WAYNE LEAMING, 57, of Spanaway, Washington, was convicted of three counts of filing false liens against federal officials, and one count of harboring federal fugitives and being a felon in possession of firearms. His co-conspirator, former Tacoma resident DAVID CARROLL STEPHENSON, was convicted of a single count of filing false liens against a federal official.
“The right to criticize our government is one of the most cherished rights. But this liberty does not include the right to commit crimes,” said U.S. Attorney Jenny A. Durkan. “These defendants repeatedly broke the law with frauds aimed at taxpayers and public servants. We are grateful the jury held them accountable for their actions.”
According to records filed in the case, law enforcement was investigating an on-going tax fraud scheme involving the JARLIK BELLs when LEAMING and STEPHENSON’s criminal conduct was uncovered. Both men already had federal criminal convictions. The JARLIK BELL investigation centered on the filing of false tax returns using a scheme known as OID fraud; RAYMOND LEO JARLIK BELL advised and assisted others in using the scheme. In 2006, the BELLs obtained a tax refund in excess of $30,000 using the scheme. Six others who were advised by JARLIK BELL also filed for and received fraudulent refunds they did not deserve. One woman received a tax refund of more than $590,000.
“There are people out there peddling ideas that are the modern equivalent of snake oil. The notion that there is a secret way to get the government to pay you money that you are not entitled to is just plain wrong. Our tax laws are public record and this conviction by jury proves that people who file false claims and sell that idea to others will be held accountable for their deceit,” said Kenneth J. Hines, Special Agent in Charge of IRS Criminal Investigation in the Pacific Northwest.
Materials found in a search of the JARLIK BELL home implicated LEAMING in separate criminal conduct. When investigators with a warrant searched LEAMING’s Spanaway home on November 21, 2011, they found six firearms. LEAMING was prohibited from possessing firearms because of a prior felony conviction of operating an aircraft without a pilot’s license. Additionally, investigators determined that two wanted federal fugitives from Arkansas had been living with LEAMING in his home. Finally, the search revealed that LEAMING and STEPHENSON, who was an inmate at the time in an Arizona federal prison, had been conspiring to file liens against various federal officials including the Arizona prison warden and the head of the Federal Bureau of Prisons.
Members of the Sovereign Citizen movement profess a belief that both state and federal government entities are illegitimate. Members of this group often engaged in so-called “freedom driving,” i.e., driving about without state-required licenses, either for their vehicles or themselves. When contacted by local law enforcement, members of the group often bombard local officials (from the officer, to local judges, to mayors and other members of local government) with frivolous liens, false claims, and sometimes threats of violence. Many members of this same group had previously come to the attention of federal law enforcement for engaging in various fraudulent tax schemes, wire fraud schemes, and (occasionally) inappropriate communications with various members of federal law enforcement and the judiciary.
Two other defendants active in the Sovereign Citizen movement have already been sentenced to prison for their criminal conduct. David Russell Myrland was sentenced in 2011 to 40 months in prison for making threats against elected officials in Kirkland, Washington. And in 2012 Timothy Garrison was sentenced to 42 months in prison for assisting in the filing of false tax returns.
The cases were investigated by the Internal Revenue Service Criminal Investigation (IRS-CI), the FBI, ATF, the Federal Protective Service and the U.S. Marshal Service.
The cases were prosecuted by Assistant United States Attorneys Vince Lombardi, Jill Otake, Thomas Woods and Matthew Diggs.
Fort Worth Man Sentenced to 51 Months for Drug TraffickingRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 39-year-old Fort Worth, Texas man has been sentenced to 51 months in federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Ray Lee Ransom pleaded guilty on April 20, 2012 to conspiracy to possess with intent to distribute hydrocodone, alprazolam and promethazine with codeine. Ransom was sentenced to a total of 51 months in federal prison today by U.S. District Judge Michael H. Schneider.
According to information presented in court, from May, 2009 through 2011, Ransom conspired with others to purchase and distribute hydrocodone, alprazolam and promethazine with codeine. Ransom and his co-conspirators purchased these controlled substances at numerous pharmacies in cities located throughout the Eastern District of Texas and in other locations, utilizing fraudulent prescriptions. A federal grand jury returned an indictment on November 2, 2011, charging 5 individuals, including Ransom, with conspiracy to possess with the intent to distribute the drugs. All of the co-defendants have been sentenced.
This case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.Former Youth Group Leader Sentenced to 5 Years in Prison for Transportation of Child PornographyRead the Press Release
WILMINGTON, Del. – David Osborn, age 41, of New Castle, Delaware, was sentenced today to 5 years in prison for transportation of child pornography via AOL chat rooms and email. Osborn also was sentenced to 5 years of supervised release following his prison sentence. He also will be required to register as a sex offender in any jurisdiction in which he lives, works, or attends school. United States Attorney Charles M. Oberly, III made the announcement following Osborn’s sentencing hearing before United States District Judge Richard G. Andrews.
According to statements made at today’s hearing and documents filed in court, Osborn was identified by the Federal Bureau of Investigation through reports of child pornography trafficking that had been provided by AOL LLC to the National Center for Missing and Exploited Children (“NCMEC”). Under federal law, internet service providers, such as AOL, are required to report suspected child pornography being transmitted over their servers to NCMEC, which then directs these “cybertips” to the appropriate law enforcement agency. AOL reported that an AOL user, later identified as Osborn, used AOL email to trade images of child pornography with another AOL customer in South Florida.
On May 26, 2011, federal agents executed a search warrant at Osborn’s New Castle residence and arrested Osborn after finding over 700 images of child pornography on his computer equipment. Law enforcement agents also searched Osborn’s email account, which was found to contain additional images of child pornography. Osborn’s child pornography collection focused mainly on girls between the ages of four and sixteen. Forensic data found on the equipment indicated that Osborn had been receiving and distributing images of child pornography for over eight years. Also found were over 500 internet chat logs between Osborn and others regarding child sexual exploitation. Investigators also learned that Osborn was the moderator of an online chat room devoted to discussions of hitting and beating children to coerce them into engaging in sexual acts.
Over the 13 years prior to his May 26, 2011 arrest, Osborn worked as a substitute teacher in the Appoquinimink School District and as a school bus driver for elementary and high school students at various New Castle County Schools. Osborn also was a member of Masons Lodge Number 26, in Newport, Delaware, where he held various positions supervising youth groups for pre-teen and teenage boys and girls.
This case is being investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Edward J. McAndrew, of the District of Delaware, and Trial Attorney Michael Grant, of the United States Department of Justice’s Child Exploitation and Obscenity Section.
For more information about reporting online child exploitation to the national CyberTipline, visit the National Center for Missing and Exploited Children’s website at: www.missingkids.com. For more information about the United States Department of Justice’s Project Safe Childhood program, visit http://www.justice.gov/psc/.
Former Texas Police Officer Pleads Guilty to Violating the Civil Rights of an ArresteeRead the Press Release
Frank William Carter, 43, a former police officer of the Laredo, Texas, Police Department (LPD), pleaded guilty today in federal court to violating the civil rights of an arrestee, the Justice Department announced today.
During his guilty plea before U.S. District Judge Diana Saldaña, Carter admitted that while using his authority as a LPD officer, he entered the backseat of a LPD patrol car where the victim was handcuffed and detained and struck the victim several times. According to information presented in court, rear-facing dash camera audio and video recordings revealed that Carter yelled obscenities at the victim while he punched the victim in the head and body. Carter also repeatedly slammed the victim’s face into the back of the seat. The victim remained handcuffed during the entire incident and never resisted or attempted to harm Carter.
“Mr. Carter has admitted that he used unjustified and unlawful force against a handcuffed arrestee,” said Assistant Attorney General for the Civil Rights Division Thomas E. Perez. “The Justice Department will continue to prosecute law enforcement officers who violate the constitutional rights of individuals in their custody.”
Judge Saldaña has ordered a pre-sentence report to be due April 11, 2013, at which time she will set sentencing date and decide whether to accept the guilty plea Carter entered today. Carter faces a maximum penalty of ten years in prison.
This case was investigated by FBI Special Agent Anthony Manganaro and Texas Ranger Nathan Mutz. The case is being prosecuted by Civil Rights Division Trial Attorneys Ryan Murguía and Christopher Lomax, with the assistance of the U.S. Attorney’s Office for the Southern District of Texas.
Former Owner of Estacada Construction Company Sentenced to One Year in Federal Residential Reentry CenterRead the Press Release
Defendant Ordered to Pay Restitution to I.R.S. and Serve Five Years ProbationPORTLAND, Ore. - Amanda Marshall, U. S. Attorney for the District of Oregon, today announced that on Wednesday, March 6, Jeffry D. Goodrich, age 48, Estacada, Oregon was sentenced to federal probation for five years, the first year to be served living in a residential reentry center. U.S. District Judge Anna Brown also ordered Goodrich to pay restitution to the IRS in the amount of $145,308, and prohibited him from being self-employed or running a business.
Goodrich pled guilty on June 4, 2012 to willfully failing to file payroll tax returns and remit payroll taxes to the IRS for Eagles View Construction from October 2005 through September 2006. Goodrich was a co-owner of Eagles View Construction and he handled the accounting and payroll for the company. Goodrich withheld payroll taxes from over 30 employees of Eagles View Construction and he gave each employee a W-2 form at the end of 2005 and 2006 showing payroll taxes had been withheld, but he did not file payroll tax returns for the company and he did not remit to the IRS the payroll taxes he withheld.
In November 2005, in an unrelated case, Goodrich pleaded guilty to bank fraud in connection with altering checks from customers of Eagles View Construction and depositing these checks into a personal bank account. In October 2006, Goodrich was sentenced to five months in federal prison, followed by five months home confinement, for this offense.
“Failure to pay payroll taxes is a serious crime because it deprives Medicare and Social Security of needed funds, reduces the money available for the federal government to provide basic services, and gives an unfair competitive advantage over law-abiding businesses,” said U.S. Attorney Marshall. “This office, in partnership with the IRS, will vigorously investigate and prosecute business owners who do not pay their fair share of payroll taxes.”
“When people withhold money from the paychecks of their hard-working employees, that money isn’t meant to be a personal slush fund. Taxes that are withheld from paychecks and not paid over to the government are stolen from the American public,” said Kenneth J. Hines, Special Agent in Charge of IRS Criminal Investigation in the Pacific Northwest.
This case was investigated by the Criminal Investigation Division of the Internal Revenue Service. The case is being handled by Assistant U. S. Attorney Seth D. Uram.
Former New Mexico State Contractor Pleads Guilty to Evading Federal TaxesRead the Press Release
ALBUQUERQUE – Shelda Sutton Mendoza, 60, of Albuquerque, N.M., pled guilty this morning to evading federal taxes. Under the terms of her plea agreement, Sutton Mendoza faces a prison sentence of 10 to 16 months in prison followed by not more than three years of supervised release. Sutton Mendoza also will be required to pay $167,362 in restitution to the IRS.
Sutton Mendoza was indicted in Dec. 2011, and charged with five counts of tax evasion. At the time of the crimes charged in the indictment, Sutton Mendoza was owner and sole shareholder of NYSNC Environmental, Inc. (NYSNC), an environmental clean-up and testing service established in 2000 and incorporated in Oct. 2003. NYSNC contracted primarily with the New Mexico Environmental Department, where Sutton Mendoza was employed in the Petroleum Storage Bureau for more than six years before leaving to establish NYSNC. The indictment charged Sutton Mendoza with evading federal personal and corporate taxes during tax years 2003, 2004 and 2005 by intentionally filing false tax returns that misrepresented her personal and corporate taxable income.
According to the plea agreement, Sutton Mendoza routinely used NYSNC funds to pay for personal expenses. In 2003 and 2004, she used more than $70,000.00 in company funds to pay for a custom designed in-ground swimming pool with custom mosaic murals and more than $200,000.00 in company funds to pay for personal clothing, handbags and cosmetics. Sutton Mendoza admitted that paying for personal expenses with company funds rendered the money taxable as personal income to her, and that she knowingly concealed from the IRS the extent of both NYSNC’s and her taxable income.
In her plea agreement, Sutton Mendoza admitted that for tax years 2003 and 2004, she signed and filed false personal and corporate federal tax returns which omitted significant personal and corporate income. She acknowledged intentionally filing a false tax return for NYSNC for calendar year 2003 in which she reported only $1,447,855.00 of the company’s gross income of $1,803,844.52, and thus evaded $17,021.00 in federal taxes. Sutton Mendoza also intentionally evaded $76,660.00 in personal income taxes for calendar year 2003 by underreporting her gross income of $261,152.00. For calendar year 2004, Sutton Mendoza reported only $851,998.00 of NYSNC’s gross income of $1,138,090.02, and thus evaded $2,121.00 in federal taxes. She also intentionally evaded $71,560.00 in personal income taxes in calendar year 2004 by underreporting her gross income of $250,580.00.
Sutton Mendoza’s sentencing hearing has yet to be scheduled.
The case was investigated by IRS, Criminal Investigation, and is being prosecuted by Assistant U.S. Attorney Mary L. Higgins.
Former New Mexico Corrections OfficerConvicted on Obstruction of Justice ChargesRead the Press Release
A federal jury late yesterday convicted Kevin Casaus, 25, a former corrections officer at the Bernalillo County, N.M., Metropolitan Detention Center (MDC) in Albuquerque, N.M., on obstruction of justice and falsification of records charges, announced the Justice Department.
Casaus and fellow former MDC corrections officers, Demetrio Juan Gonzales, 40, and Matthew Pendley, 26, were indicted in June 2012, and charged with various crimes related to the assault of an inmate housed at MDC on Dec. 21, 2011, and subsequent attempts to cover up and impede the investigation of the assault. In Oct. 2012, Gonzales pleaded guilty to violating the civil rights of an individual in his custody when he struck and choked the victim in the shower room/dress out area of MDC. Pendley pleaded guilty in Feb. 2012 to obstructing justice by making false statements to law enforcement during their investigation of the assault on an inmate.
According to the evidence at trial, during the early morning hours of Dec. 21, 2011, Gonzales was assigned to the Receiving-Discharge-Transfer (RDT) Unit at MDC where individuals are brought to be booked soon after they are arrested. His job was to photograph and fingerprint those who are brought to RDT for booking. The victim, who had been arrested for Driving While Intoxicated, was verbally uncooperative during the booking process, but was not a physical threat to anyone. Gonzales testified that he became angry at the victim and walked him to the shower room where he knew there were no surveillance cameras. Several other corrections officers, including Casaus, followed Gonzales to the shower room. There, Gonzales physically assaulted the victim, striking him multiple times, and choking him. Gonzales testified that he beat the victim “in a blind rage” and then had to wash the victim’s blood off his hands. He further testified that the victim did not do anything to justify the beating.
According to the testimony, Casaus and two other corrections officers were present in the shower room during the beating. Additionally, a former inmate who was in the hallway outside the shower room at the time of the beating, overheard groans and sounds consistent with the assault coming from the shower room. He was then tasked with cleaning the blood that was on the floors and walls of the shower room. The victim testified that, after Gonzales left the shower room, Casaus assaulted him by shoving him and striking him. Casaus falsely stated during a recorded interview with a Bernalillo County Sheriff’s Office investigator that the victim was not assaulted in the shower room, the victim was not bleeding, and that they only brought the victim to the shower room to ask him to change out of his clothes. Casaus falsified his report when he wrote that he saw blood on the victim's clothes, but did not know where the blood came from.
The jury deliberated approximately four hours before returning a verdict of guilty on the obstruction of justice and falsification of records charges, and not guilty on the assault charge.
“Today's verdict affirms that law enforcement officers are not above the very laws they are sworn to uphold,” said Assistant Attorney General Thomas E. Perez. “As in this case, the Civil Rights Division will work closely with our United States Attorneys to vigorously prosecute police misconduct.”
Casaus faces a maximum penalty of 20 years in prison when he is sentenced. His sentencing hearing has yet to be scheduled. Gonzales was sentenced in Jan. 2013 to 33 months in prison. Pendley’s sentencing hearing also has not been scheduled.
“When those who are sworn to uphold the law and protect others instead abuse their power and position, they undermine the public’s confidence in the justice system and our government institutions,” said Kenneth J. Gonzales, U.S. Attorney for the District of New Mexico. “The U.S. Attorney’s Office and the Department of Justice are committed to promoting trust in our system of justice by vigorously prosecuting those who obstruct justice.”
“Corrections officers have a special duty to safeguard the civil rights of the inmates they oversee. That is why the Albuquerque FBI aggressively investigated this case that also resulted in the guilty pleas of two other former MDC officers,” said Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI. “I would like to congratulate the FBI Special Agents for their hard work, and the U.S. Attorney's Office and the Justice Department’s Civil Rights Division for three successful and important civil rights prosecutions. I also want to thank the Bernalillo County Sheriff's Office and the Metropolitan Detention Center's executive management and internal affairs staff.”
This case was investigated by the Albuquerque Division of the FBI and is being prosecuted by Assistant U.S. Attorney Mark T. Baker for the District of New Mexico and Trial Attorney Fara Gold of the Civil Rights Division of the U.S. Department of Justice.
Former Mendenhall Police Chief IndictedRead the Press Release
Jackson, Miss - Donald “Bruce” Barlow, 50, who served as the Mendenhall, Mississippi Chief of Police until October 2010, was arrested today by Special Agents of the Federal Bureau of Investigation pursuant to a federal indictment charging him with conspiracy, extortion, soliciting bribes, and witness tampering, U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen announced.
If convicted of the charges, Barlow faces a maximum penalty of 105 years in prison and a $2,000,000.00 fine. He will appear for an arraignment before U.S. Magistrate Judge F. Keith Ball on Friday, March 8, 2013 at 11:00 a.m.
This case was investigated by the Federal Bureau of Investigation and the Mississippi State Auditor’s Office. It will be prosecuted by Assistant U.S. Attorney Mike Hurst.
The public is reminded that an indictment is an allegation that a defendant has committed a crime. All defendants are presumed innocent until and unless proven guilty.###
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Former Markham Deputy Police Chief Arrested on Federal Civil Rights Charge Alleging Aggravated Sexual AbuseRead the Press Release
CHICAGO — The former deputy police chief in south suburban Markham was arrested today after being charged in a federal indictment with violating the civil rights of a victim through acts that included aggravated sexual abuse. The defendant, TONY D. DEBOIS, was arrested at his home this morning without incident by special agents of the FBI. DeBois was the deputy chief of the Markham Police Department when the alleged crime occurred on Sept. 23, 2010.
DeBois, 41, of Matteson, was scheduled to appear at 2:15 p.m. today before U.S. District Magistrate Judge Sidney I. Schenkier in Federal Court. He was charged in a single-count indictment that was returned by a federal grand jury yesterday and unsealed today following his arrest.
The indictment alleges that on Sept. 23, 2010, while acting in his official capacity as Markham deputy police chief, DeBois violated the victim’s right to bodily integrity by acts that included aggravated sexual abuse.
DeBois served as deputy chief between 2008 and approximately 2011, and he was also the Markham Police Department’s head of internal affairs between 2007 and approximately 2011, when he became Markham’s inspector general until sometime in 2012. DeBois began his law enforcement career with the former Chicago Housing Authority Police Department in the 1990s, and he was a police officer in south suburban Harvey from 1999 to 2007, when he joined the Markham Police Department.
The arrest and indictment were announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. They thanked Anita Alvarez, Cook County State’s Attorney, for her office’s extensive cooperation in the investigation, as well as the Illinois State Police.
The government is being represented by Assistant U.S. Attorney April Perry.
The felony civil rights violation carries a maximum penalty of life in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that the charge is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Former Law Enforcement Officers Plead Guilty to Theft of Government FundsRead the Press Release
Jackson, Miss. -- Watson Jackson, a former Deputy with the Madison County Sheriff’s Office, Zach Robinson, a former Deputy with the Hinds County Sheriff’s Office, and Kent Daniels, a former Jackson Police Officer and Investigator for the Hinds County District Attorney’s Office, pled guilty in U.S. District Court today to theft of government funds and property.
On September 30, 2011, defendants Robinson and Daniels, along with an FBI informant, drove to a motel to rob a room they thought was being used by a drug dealer. They discussed detailed plans of the robbery and how they would divide the money among themselves. However, the FBI had previously rented the motel room and placed $23,000.00 in cash and seven iPads in the room. Jackson drove in a separate vehicle to the motel and acted as a lookout.
Upon arrival at the motel, the FBI informant and Robinson entered the motel room and took the $23,000.00 and seven iPads. After taking the cash and the iPads, they met up with defendant Daniels in order to count the money. At the time, they did not believe they had taken all of the money, so Jackson and the FBI informant went back to the motel room and looked for additional money. After the robbery, defendants Robinson, Daniels, Jackson and the FBI informant divided the money and iPads between them.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Jerry Rushing and Mike Hurst.
The defendants will be sentenced by U.S. District Judge Tom S. Lee on May 23, 2013, at 9:00 a.m. They each face a maximum sentence of 10 years in prison and a $250,000 fine.###
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
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You can also fax information to:
(225) 334-4707
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Former Gamestop VP, Who Defrauded Company of Nearly $2 Million, Is Sentenced to 51 Months in Federal Prison and Ordered to Pay RestitutionRead the Press Release
DALLAS, Texas — Frank Christopher Olivera, 46, of Grapevine, Texas, the former Vice President of Corporate Communications and Public Affairs at Gamestop Texas LLP, was sentenced this afternoon by U.S. District Judge Jane J. Boyle to 51 months in federal prison, following his guilty plea in November 2012 to one count of mail fraud. Olivera stole more than $1.7 million, most of which he has repaid to the victim, Gamestop Texas LLP. Judge Boyle ordered that Olivera pay an additional $57,376, which constitutes the amount unpaid on the loss and $77,275 additional restitution to Gamestop. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, beginning in July 2009 and continuing to April 2011, Olivera defrauded Gamestop by submitting false and fraudulent invoices for vendor services from a fictitious company, “Cloud Communications LLC,” which he owned and controlled. Olivera directed Gamestop to send the payments from Gamestop’s offices in Grapevine to Cloud Communications LLC in Las Vegas and Lake Tahoe, Nevada and in Canada. In addition to creating a fictitious company, Olivera also created a fictitious person, “Jennifer Miller,” to serve as the point of contact at Cloud Communications. Upon receipt of payments from Gamestop, Olivera would deposit the checks into a bank account held by Cloud Communications and then would transfer the fraudulently obtained funds into his personal bank account.
The overall scheme to defraud involved $1,965,900 in fraudulent invoices.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Errin Martin.
Former Employee of Timeshare Consulting Firm Pleads Guilty to Fraud ConspiracyRead the Press Release
CAMDEN, N.J. – A former employee of The Vacation Ownership Group, LLC admitted today to conspiring to defraud owners of timeshare properties, U.S. Attorney Paul J. Fishman announced.
Aimee Allen, 27, of Myrtle Beach, S.C., pleaded guilty to a one-count criminal Information charging her with conspiracy to commit mail and wire fraud. Allen entered her guilty plea before U.S. District Court Judge Noel L. Hillman in Camden federal court.
According to documents filed in this case and statements made in court:
The Vacation Ownership Group, a/k/a VO Group LLC (the “VO Group”), purported to offer owners of timeshares consulting services, including timeshare cancellation services. In June 2010, Allen started working at the VO Group and was trained by VO Group managers to call customers using prepared scripts. Allen would call customers and give them the false impression that she was working for a bank or lending institution. Allen then would falsely represent that the VO Group could pay off the customers’ timeshares or have their timeshares cancelled. Allen also served as a “reference” for other VO Group employees by posing as a satisfied customer to persuade a new customer to send the VO Group money. After hearing Allen’s false representations, some customers sent checks to the VO Group. Allen admitted to causing over $200,000 in losses.
On Jan. 23, 2013, 10 other individuals who worked at the VO Group were charged in a Superseding Indictment with conspiracy to commit mail and wire fraud and other charges. Those charges are pending before Judge Hillman.
The mail and wire fraud conspiracy charge to which Allen pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is currently scheduled for June 14, 2013.
U.S. Attorney Fishman credited special agents from the FBI’s Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge David Velazquez in Newark; and special agents from the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Robert Panella, New York Region, for their roles in the investigation.
The government is represented by Assistant U.S. Attorneys Alyson M. Oswald and R. David Walk, Jr. of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel: Edward F. Borden, Jr., Esq., Cherry Hill, N.J.
Allen, Aimee Information
Former Chicago Bears Player and Cook County Sheriff’s Deputy Charged Separately with Failing to File Federal Tax ReturnsRead the Press Release
CHICAGO — A former Chicago Bears football player and a Cook County sheriff’s deputy who worked part-time as a collegiate and professional sports referee were charged separately today with misdemeanor federal offenses for allegedly failing to file federal income tax returns over a period of four years.
One defendant, CHRISTOPHER ZORICH, 43, of Chicago, who played for the Chicago Bears from 1991 through 1996 and for the Washington Redskins in 1997, was charged with four counts of failing to file federal income tax returns for calendar years 2006 through 2009 when he allegedly had gross income totaling more than $1 million. Through his attorney, Zorich authorized the government to disclose that he is cooperating with the Internal Revenue Service and will plead guilty to the misdemeanor charges.
The other defendant, STEPHEN R. PAMON, 61, of Elk Grove Village, a Cook County sheriff’s deputy who officiated college basketball, football, and baseball games, as well as Arena Football League games, was also charged with four counts of failing to file federal income tax returns for calendar years 2006 through 2009 when he allegedly had gross income totaling nearly $325,000.
Charging documents were filed today against both defendants in U.S. District Court. They will be arraigned separately on dates still to be determined.
According to the charges against Zorich, he graduated from the University of Notre Dame in 1991 and from its law school in 2002. He was employed by a Chicago law firm from 2002 through 2006, and by the University of Notre Dame from 2008 through 2010. In 1993, Zorich founded and served as the executive director of the not-for-profit Chris Zorich Foundation, which was established to help disadvantaged families in the Chicago area and provide scholarships for disadvantaged students to attend Notre Dame.
The Foundation paid Zorich rental income for the use of property of approximately $3,000 per month. In 2004, the Foundation’s registration with the Illinois Attorney General’s Office was cancelled after the Foundation failed to submit an annual report for calendar year 2002, making the Foundation ineligible to solicit, receive, or hold funds in Illinois. However, the Foundation continued to receive contributions and make rental payments to Zorich during the years 2006 through 2009, despite failing to file tax forms reporting the payments to Zorich during those four years.
The charges allege that during those years, Zorich received deferred compensation from the Chicago Bears, as well as rental income from the Foundation, and income from the law firm, Notre Dame, and personal appearance fees. He allegedly received gross income of at least $331,625 in 2006; $70,996 in 2007; $372,448 in 2008; and $242,298 in 2009, but failed to file federal income tax returns for each of those years.
According to the charges against Pamon, in addition to working for the Cook County Sheriff’s Department, he worked for a private security company from 2005 through 2008, and 3 from 1973 through at least 2010, he worked as a referee officiating collegiate games, including for the Big Ten Conference, and since 2000 as a referee in Arena Football League games.
The charges allege that Pamon received gross income of at least $102,657 in 2006; $87,474 in 2007; $59,082 in 2008; and $75,525 in 2009, but failed to file federal income tax returns for each of those years.
The charges were announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.
Failure to file a federal income tax return is a federal misdemeanor and carries a maximum penalty of one year in prison and a $100,000 fine on each count. In addition, a defendant convicted of tax offenses faces mandatory costs of prosecution and remains civilly liable to the government for any and all back taxes, as well as a potential civil fraud penalty of up to 75 percent of the underpayment plus interest. If convicted, the Court must determine a reasonable sentence to be imposed under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented in both cases by Assistant U.S. Attorney William Hogan.
The public is reminded that an information contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Zorich Information
Pamon InformationFive Sentenced in Dog Fighting RingRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court yesterday, Judge Louise W. Flanagan sentenced JAMES MATTHEW BLACKMAN, 43, to 3 years probation and 30 days intermittent confinement, RICKY DIAL, 55, to 8 months imprisonment followed by 2 years of supervised release, and JIMMY JACOBS, 40, to 29 months imprisonment followed by 3 years supervised release, all of these men are from Maxton, North Carolina. Also sentenced were FRANK JACOBS, 69, of Laurinburg, North Carolina, to 29 months imprisonment followed by 3 years supervised release and TONY HARRIS, 35, of Lamar, South Carolina to 21 months imprisonment and 3 years of supervised release.All these men were sentenced for their roles in a dog fighting ring in Robeson County, North Carolina.
United States Attorney Walker stated, “Word must go out. Dog fighting, a particularly cruel crime, will not be tolerated. This prosecution stands for our commitment to pursue and prosecute those engaged in such heinous acts.”
According to the Indictment, the members of the conspiracy used various manners and means to accomplish the conspiracy, including, but not limited to, the following: trained and bred pit bulls for participation in dog fighting ventures; traveled in interstate commerce to other locations to participate in dog fighting ventures; sponsored and fought dogs that had traveled in interstate commerce in animal fighting ventures; placed and accepted bets on individual dog fights; collected entrance fees to dog fights and secured locations of dog fighting ventures; provided property in secluded locations and constructed pits to host dog fighting ventures; and offered prize money for winning participant in dog fighting venture.
Investigation of this case was conducted by the North Carolina Alcohol Law Enforcement, Scotland County Sheriff’s Office, and the Federal Bureau of Investigation’s Raleigh – Durham Safe Streets Task Force consisting of the Raleigh Police Department, Durham Police Department, Durham County Sheriff’s Office, Cary Police Department, North Carolina State Highway Patrol, Greenville Police Department, Garner Police Department and North Carolina Probation and Parole. Assistant United States Attorney Denise Walker prosecuted the case.
Final Defendant Sentenced in Federal Gun Conspiracy CaseRead the Press Release
Gulfport, Miss – Robert Arnold Savage, 62, of Grand Bay, Alabama, was sentenced by Senior District Judge Walter J. Gex III to serve 41 months in prison for a federal firearms charge, U.S. Attorney Gregory K. Davis announced. He was also ordered to forfeit a total of 85 firearms and pay a $3,000 fine.
Savage was one of 15 defendants charged in a firearms conspiracy case involving the illegal sale of firearms. He pled guilty on December 7, 2012 to the illegal sale of firearms to a person he believed was an unlicensed out-of-state resident who was actually an undercover ATF agent.
This case was the result of an undercover investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives into the Simon City Royals criminal street gang and persons illegally selling firearms. It was prosecuted by Assistant U.S. Attorney Annette Williams.###
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
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Fifteen Charged in Telemarketing Scheme to Defraud Time-Share Unit OwnersRead the Press Release
Forty-one defendants charged to date on timeshare resale telemarketing fraud
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced today a two-count Indictment charging conspiracy to commit mail fraud and wire fraud and conspiracy to commit money laundering. The indictment charges the following 15 defendants: Pasquale Pappalardo, 60, of Coral Springs, FL, Pasqualino Agovino, 49, of Coral Springs, FL, Patride Ditroia, 43, of Coral Springs, FL, Louis Duany, 64, Wilton Manors, FL, Michael Bleich, formerly of Boca Raton, FL, 36, Audwin Lovinsky, of Tamarac, FL, 35, Ibrahim Al-Dabbas, 47, Deerfield Beach, FL, Michael Vincent Scheel, 50, of Boca Raton, FL, Diana Harrington, 65, of Boca Raton, FL, Ashley Lowton, 24, of Clermont, FL, Charles Lee, 24, of Coral Springs, FL, Kenneth Rockmore, 27, of Lauderhill, FL, Ricardo Davis, 25, of Tamarac, FL, Milton Oliver, 37, of Boynton Beach, FL, and Clinton Ross, 57, of Redondo Beach, CA. All defendants are charged in Count 1 of the indictment with conspiracy to commit mail fraud and wire fraud, in violation of Title 18, United States Code, Section 1349. Count 2 charges defendants Pappalardo, Agovino, Ditroia, and Duany with conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956. Defendants Pappalardo, Ditroia, Lovinsky, Oliver, Agovino, Duany, Lowton, Davis and Lee all appeared in court today before U.S. Magistrate Judge Lurana S. Snow. Bond hearings are scheduled for tomorrow. Arrests are expected to continue during the week.
So far, 41 defendants have been charged to date for their involvement with a time-share resale telemarketing room called Timeshare Mega Media and Marketing Group, Inc. (TMMMG). The other cases previously filed include Case Nos. 11-60190-CR-Cohn, 11-60247-Cr-Marra, 11-60268-Cr-Hurley, 12-60019-Cr-Scola, 12-60149- Cr- Scola, and 12-mj-6114-RSR.
According to the indictment, in June 2009, Pappalardo incorporated TMMMG, using defendant Duany and Duany’s mother as nominee owners. Pappalardo was a co-owner of TMMMG, and Ditroia, Agovino, and Duany helped run TMMMG for him. According to the allegations in the indictment, the defendants conspired to unlawfully enrich themselves by making false representations over the telephone to individuals who were trying to sell their time-share units. Among the false statements, the defendants would tell customers, most of whom lived outside of the State of Florida, that the defendants had successfully sold their time-share unit and asked the customer to pay a fee to finalize the sale, which fee would purportedly be refunded at closing. This fee ranged from at least $1,996 to as much as $10,000.
According to the indictment, the defendants knew that TMMMG never had any buyers for any of the sellers of their time-share units. In this way, during the ten months that TMMMG was in business, it fraudulently induced customers to send approximately $5,000,000 to TMMMG, of which Pappalardo received at least $300,000 in checks and hundreds of thousands of dollars of cash from victims.
If convicted, defendants Pappalardo, Agovino, Ditroia, and Duany each face a possible statutory maximum sentence of up to 40 years in prison. Defendants Bleich, Lovinsky, Al-Dabbas, Scheel, Harrington, Lowton, Lee, Rockmore, Davis, Oliver, and Ross each face a possible statutory maximum sentence of up to twenty years in prison.
Mr. Ferrer commended the investigative efforts of the FBI. Mr. Ferrer also recognized the assistance provided by the Fort Lauderdale Police Department and the Federal Trade Commission during this investigation. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
Attachments: Indictment (PDF)
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Federal Authorities Arrest Eagle Pass Contractor in Connection with Maverick County Bribery, Kickback and Bid-rigging SchemeRead the Press Release
In Eagle Pass, Texas, Federal Bureau of Investigation agents arrested Jose Telles, Jr, operator of 4x4 Construction, in connection with an alleged bribery, kickback and bid-rigging scheme announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
A federal grand jury indictment, returned yesterday and unsealed today, charges the 43-year-old Eagle Pass resident with one count of paying a bribe to an agent of an organization receiving federal funds. The indictment alleges that in November 2009, Telles submitted a $30,200 bid to Maverick County to construct inlets and junction boxes in Precinct 1 of Maverick County. Telles was awarded the contract by Maverick County after agreeing to pay half of his profits—$5,000—to a Maverick County Commissioner for being awarded the contract. 4x4 Construction received a $15,100 check in November 2009 and a second $15,100 check in June 2010; in return Telles paid the Maverick County Commissioner.
Upon conviction, Telles faces up to ten years in federal prison.
This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety. Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741. Assistant United States Attorney Michael Galdo is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.Federal Agents Thwart Attempted Bank Account TakeoverRead the Press Release
ATLANTA – Brandon Lamar Young, 25, of Lawrenceville, Ga. was sentenced today by United States District Judge Thomas W. Thrash, Jr. for conspiracy to defraud Bank of America as part of a plot to take over a Georgia resident’s bank account.
“Prosecuting bank fraud and identity theft continues to be one of the major priorities of the Department of Justice,” said United States Attorney Sally Quillian Yates. “These defendants are being held accountable for their fraudulent conduct because of an honest citizen who refused to go along with the fraud scheme and the hard work of law enforcement agents who moved quickly and successfully stopped the crime before a Georgia resident was further victimized.”
“Identity theft is a serious issue and can, as in this case, involve stealing and misusing confidential personal information,” said Steve Linick, Inspector General, Federal Housing Finance Agency. “My office is committed to investigating and prosecuting such cases and we are proud to have worked with our law enforcement partners on this case.”
According to United States Attorney Yates and the information presented in court: On several occasions between June 2011 and May 2012, Brandon Young bought confidential financial information relating to 12 financial accounts from Alex Dantzler for a total of $1,800. Dantzler worked for the Federal National Mortgage Association, commonly known as “Fannie Mae,” in Dallas, TX, and had access to electronic loan files and other confidential financial information pertaining to Fannie Mae’s customers. One of the account profiles Dantzler sold to Young was of a Georgia resident, and included the Georgia resident’s Social Security number, date of birth, Georgia driver’s license number, and Bank of America account number.
Young took the Georgia resident’s financial information and asked an acquaintance, Oluwashina Daniel Akinfenwa, of Marietta, Ga., to help him find a Bank of America employee who would be willing to help him take over the individual’s account. Akinfenwa recruited Bank of America employee Letitia Perry, of Atlanta, Ga., who had access to the bank’s computer system. Akinfenwa asked Perry to help take over the individual’s account. Young and Akinfenwa agreed to give Perry one-third of whatever money they could get out of the individual’s account.
Perry then used Bank of America’s computer system to access confidential information pertaining to the Georgia resident’s account on at least three separate occasions. On August 10, 2012, she deliberately deleted the account holder’s true telephone number from the computer system and replaced it with Young’s telephone number. Perry then gave the telephone password and other confidential information pertaining to the individual’s account to Young and Akinfenwa.
Young contacted another friend on August 14, 2012, and asked him if he knew a white male who might be willing to impersonate the individual so they could illegally withdraw funds from the account. Young’s friend said that he would find someone who would do it. Instead, Young’s friend contacted the FBI. The FBI quickly arranged for one of its white male undercover employees to pose as a person who would be willing to impersonate the individual.
On August 14, 2012, the FBI undercover employee telephoned Young and introduced himself. Young told the FBI undercover employee that he had identified an account that he wanted to take over. He also stated that a female bank employee had deleted the real account holder’s telephone number from official bank records and had replaced it with his telephone number. Young further stated that he was in possession of the real account holder's account profile.
Young instructed the FBI undercover employee to have his photograph taken and to send it to him as soon as possible. He wanted the photo so he could obtain a fake driver’s license in the real account holder’s name. Young gave the FBI undercover employee specific instructions on what the photograph should look like. The FBI undercover employee had his photograph taken according to Young’s directions and sent it to him.
One week later, on August 21, 2012, Young sent the FBI undercover employee a text message containing the individual’s account profile. He also sent the FBI undercover employee a text message containing a photograph of a fake Georgia driver's license bearing the individual’s name, address, and the picture.
Young, Akinfenwa, and Perry were arrested before they could remove any money from the Georgia resident’s account. Young’s arrest also prevented him from victimizing the persons associated with the other 11 stolen accounts.
Akinefenwa, Perry, and Dantzler pleaded guilty to this offense. On February 5, 2013, Perry was sentenced to five months in federal prison, to be followed by five months of home confinement, and one year of supervised release. On February 5, 2013, Akinfenwa was sentenced to 15 months in federal prison to be followed by one year of supervised release.
Young was sentenced to serve 2 years, 9 months in federal prison to be followed by 3 years of supervised release. Young was convicted on December 13, 2012, upon his plea of guilty.
Dantzler is scheduled to be sentenced on May 8, 2013, at 10:00 a.m. before United States District Judge Thomas W. Thrash, Jr. He could receive a maximum sentence of five years in prison and a fine of up to $250,000.
In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding, but provide appropriate sentencing ranges for most offenders.
The Young, Akinfenwa, and Perry cases were investigated by special agents of the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Russell Phillips.
The Dantzler case is being investigated by special agents of the Federal Bureau of Investigation and the Federal Housing Finance Agency, Office of Inspector General, and is also being prosecuted by Assistant United States Attorney Russell Phillips.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Fairfield Man Pleads Guilty to Being A Felon in Possession of A FirearmRead the Press Release
Department of Justice
Office of Public AffairsTraffic stop leads to federal conviction
TYLER, Texas – A 34 year old Fairfield man has pleaded guilty to being a felon in possession of a firearm announced U.S. Attorney John M. Bales today.
Victor Vasquez pleaded guilty today in U.S. Magistrate Judith Guthrie’s court to charges of being a felon in possession of a firearm. A federal grand jury indicted Vasquez for the offense on October 3, 2012. Vasquez admitted that on April 4, 2012 he was stopped by a police officer in Rusk, Texas for speeding. During the course of the stop, the officer determined that Vasquez had been drinking alcoholic beverages and Vasquez was arrested for DWI. Following the arrest, the officer inventoried Vasquez’s vehicle and found a 7.62x39 mm, semi-automatic rifle and ammunition for the rifle. The next day, a Rusk detective determined that Vasquez had a prior felony conviction in Kansas for Attempted Aggravated Burglary. A search warrant for Vasquez’s vehicle led to the discovery of a short-barrel, 12 gauge shotgun and a dozen 12 gauge shotgun shells under the back seat. Vasquez must forfeit the seized weapons and ammunition.
Vasquez is facing up to ten years in prison and a $250,000.00 fine. A sentencing date has not been scheduled.This case was investigated by the Rusk Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Tyler Office and prosecuted by Assistant U.S. Attorney Jim Noble.
Erwin Man Sentenced for Possession of A Firearm by A Convicted FelonRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court yesterday LESLIE AARON MCKEITHAN, 29, of Erwin, North Carolina was sentenced by Chief United States District Judge James C. Dever, III to 120 months imprisonment, followed by three years of supervised release.
On October 29, 2012, MCKEITHAN pled guilty to Possession of a Firearm by a Felon in violation of Title 18, United States Code, Section 922(g) and Title 18, United States Code, Section 924(a)(2).
According to the investigation, on November 26, 2011, Dunn Police Department Officers were dispatched to the Wal-Mart parking lot in reference to a domestic assault. Upon arrival witnesses informed officers they observed MCKEITHAN and a female arguing. During the course of the argument, MCKEITHAN struck the female several times and took her purse. When a witness attempted to help the female, MCKEITHAN pulled a firearm from his waist band and threatened the witness. MCKEITHAN then walked away and put the firearm and the purse in the victim’s car. The female gave police consent to search her car and officers seized a .25 caliber semi-automatic firearm. MCKEITHAN was placed under arrest and acknowledged the firearm belonged to him. MCKEITHAN was previously convicted of a violent felony in State court.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Dunn Police Department, Harnett County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant United States Attorney Jennifer E. Wells prosecuted the case.
Durham Man Sentenced for Bank RobberyRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today RAEFORD EDWARD NUNN, 44, of Durham, North Carolina was sentenced by United States District Judge Terrence W. Boyle to 57 months imprisonment, followed by three years of supervised release. The 57 months sentence was at the top of the sentencing guidelines range.
On October 22, 2012, NUNN pled guilty to bank robbery by force or violence in violation of Title 18, United States Code, Section 2113(a).
According to the investigation, on October 20, 2010, NUNN robbed the Capital Bank located in Wake Forest, North Carolina of approximately $1,260.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Federal Bureau of Investigation and the Wake Forest Police Department. Assistant United States Attorney S. Katherine Burnette prosecuted the case.
District Man Found Guilty of Armed Robbery and Other Charges in 2012 Attack in Northwest Washington-Defendant Robbed Victim After Asking Her for Directions-Read the Press Release
WASHINGTON – Anthony Butler, 51, of Washington, D.C., was found guilty by a jury today of charges stemming from the armed robbery of a woman last fall in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Butler was found guilty in the Superior Court of the District of Columbia of one count each of armed robbery, carrying a dangerous weapon, and possession of an open container of alcohol, as well as two counts of felony threats. He is to be sentenced on May 17, 2013 by the Honorable A. Franklin Burgess, Jr. Butler, who has previous convictions for robbery, carjacking and other offenses, faces enhanced penalties that could lead to a life prison sentence.
According to the government’s evidence, the attack took place about 8 p.m. on Oct. 27, 2012, near the National Zoo. The victim was walking alone near Adams Mills Road and Walbridge Place NW, headed to a friend’s house for a dinner party, when Butler saw her. He got out of a large red pick-up truck that was blocking her path and pretended to ask for directions.
Butler quickly grabbed the woman’s arm, thrust a knife up to her stomach, and demanded her phone and purse. After he got those items, he demanded her necklace. When she couldn’t get her necklace off fast enough, Butler yelled at her to take it off or he would kill her. After robbing her, he told her to run in the opposite direction and again threatened her if she didn’t comply.
Butler then took off in the pick-up truck. The victim flagged down a motorist who called 911. About 10 minutes later, officers with the Metropolitan Police Department’s Robbery Intervention Program spotted a truck matching the description of the one Butler was using near a gas station at Georgia and Missouri Avenues NW. Officers found the victim’s belongings spread around the truck; Butler had a knife. The victim identified Butler and he was arrested.
In announcing the verdict, U.S. Attorney Machen commended the work of those who investigated the case from the MPD. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Debra McPherson, Litigation Technology Specialist Paul Howell, and Victim/Witness Advocate Jennifer Clark. Finally, he praised the work of Assistant U.S. Attorney Natalia Medina, who investigated and prosecuted the case.
13-086Department of Justice Awards $1 Million to the National Crime Prevention Council to Support Gun Safety CampaignRead the Press Release
The Bureau of Justice Assistance (BJA) awarded $1 million to the National Crime Prevention Council (NCPC) to support the development of a National Public Education Campaign on the subject of responsible gun ownership and safe gun storage. With the award, NCPC will create, produce, and distribute television, radio, and outdoor Public Service Announcements (PSAs) that encourage gun owners to safely store their firearms so that they do not fall into the wrong hands. The campaign will also emphasize the importance of immediately reporting lost or stolen guns to local law enforcement to ensure public safety.
“As part of President Obama's comprehensive plan to reduce gun violence, the Administration is committed to working with firearm owners and enthusiasts to prevent tragic accidents and keep guns from falling into the wrong hands,” said Attorney General Eric Holder. “We are determined to implement the kinds of common-sense solutions that our citizens - and especially our young people - deserve.”
Ensuring the public is educated in responsible gun ownership and firearm safety is a critical aspect to reducing gun violence. Gun owners, community groups and businesses must be aware and reminded to practice safe firearm storage and to make certain that firearms in the home are not casually accessible. This public awareness campaign will endeavor to decrease the threat of gun violence by promoting principles of responsible firearm ownership nationwide and providing guidelines for the safe usage and storage of firearms.
NCPC, founded in 1982, is the nation’s nonprofit leader in crime prevention. For 30 years, they have delivered crime prevention tips and public service advertising campaigns that empower citizens individually and collectively to keep themselves, their families and their communities safe from crime.
It is planned that the PSAs created through this award will be distributed to more than 1,700 television stations, nearly 15,000 radio stations and more than 500 cable networks in 210 markets in summer 2013.
Denver Business Owner Pleads Guilty to Mail Fraud and Money Laundering as Part of A Ponzi SchemeRead the Press Release
DENVER – Michael James Turnock, age 68, of Denver, Colorado, pled guilty earlier this week before U.S. District Court Judge Christine M. Arguello to one count of mail fraud and one count of money laundering, the United States Attorney’s Office, the Federal Bureau of Investigation, IRS – Criminal Investigation and the United States Postal Inspection Service announced. Turnock, who is free on bond, is scheduled to be sentenced by Judge Arguello on May 28, 2013.
Turnock was originally charged by Information on February 14, 2013. He waived his right to be charged by an Indictment. According to the facts contained in the Information as well as the stipulated facts contained in the plea agreement, beginning no later than January 2002, and continuing through August of 2012, Turnock devised a scheme to defraud note-holders by obtaining money by means of materially false and fraudulent pretenses, representations and promises. The scheme ended on August 14, 2012, when the Securities and Exchange Commission (SEC) filed a complaint in federal court in Denver and obtained a court order freezing Bridge Premium Finance’s (BPF) assets. At that point, BPF’s note-holders included fifty-eight who had invested, and lost approximately $4,168,145.
In about 1996, Turnock became the majority owner of Berjac of Colorado, LLC, and in 2004 he became the sole owner. Two years later, Turnock changed the name of the company to Bridge Premium Finance, LLC. BPF was in the business of providing financing to clients. The clients were small businesses whose insurance carriers required them to pay the full amounts of their annual premiums in advance. BPF’s clients paid 25% of the premiums, and BPF loaned the remaining 75%. The clients usually repaid the principal amounts of the loans over eight- or nine-month periods, and made interest payments to BPF at rates between 12% and 18%. Nearly all of the money coming into BPF during this time came from investors, who received a promissory note from BPF, signed by Turnock. At times, BPF had more than one hundred note-holders.
Turnock told prospective note-holders that by charging its clients interest rates higher than the rates at which note-holders were paid, BPF generated enough funds to pay principal and interest to note-holders. However, Turnock knew BPF had not been a profitable business since at least 1998 and since 2002 its financing of small businesses had not generated sufficient revenue to make interest payments to note-holders or to repay them. For each year from 2002 through 2011 and into 2012, the amount that BPF owed to note-holders exceeded the amount of money that BPF had on hand. During that time, Turnock used most of the money invested by note-holders for purposes other than to make loans to BPF’s clients. He used note-holders’ money to pay BPF-related expenses, and he also diverted the note-holders’ money to fund his other businesses, make loans to an entity involved in real estate transactions, pay fees to himself and pay personal expenses. He used money from new investments to pay redemptions requested by note-holders who had invested earlier and to make interest payments to earlier note-holders. Turnock also prepared false and misleading reports, which misrepresented BPF’s financial position.
In early 2012, a note-holder asked to withdraw a portion of his investment. Turnock misrepresented that $150,000 was available at that time. Because BPF did not have that much money, Turnock persuaded two other individuals to invest $500,000 in BPF. On the same day, Turnock used those funds to write a $150,000 check to the note-holder requesting the withdrawal. Turnock solicited and obtained the additional investment in an effort to continue to operate his scheme.
“Ponzi schemes in this case hurt both those who were defrauded into investing, and the economy as a whole,” said U.S. Attorney John Walsh. “One of this office’s top priorities is identifying and prosecuting investment fraud scams like this one.”
“The FBI will continue to protect the financial markets by working closely with its law enforcement and regulatory partners,” said FBI Denver Special Agent in Charge James Yacone. “We trust that the outcome of this investigation will deter others who are seeking to engage in similar criminal activity and attempting to defraud innocent investors.”
“The U.S. Postal Inspection Service will continue to vigorously pursue those who utilize the U.S. Mail to perpetrate fraud schemes and steal our customers’ hard earned money,” said Adam Behnen, Inspector in Charge of the U.S. Postal Inspection Service Denver Division. “We are appreciative of our quality law enforcement relationships with the Federal Bureau of Investigation and IRS Criminal Investigation for their hard work in this case.”
“Investment fraud is like a 'house of cards’; the underlying structure can fall apart at any time leaving many investors in financial ruin,” said Stephen Boyd, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office. “Defrauding investors is a serious offense and those who do will be held accountable.”
Turnock faces one count of mail fraud which carries a penalty of not more than 20 years in federal prison and a fine of up to $250,000. He also faces one count of money laundering which carries a penalty of not more than 20 years in federal prison and a fine of up to $500,000.
This case was investigated by the Federal Bureau of Investigation (FBI), the Internal Revenue Service – Criminal Investigation (IRS-CI), and the United States Postal Inspection Service.
This matter is being prosecuted by the Economic Crimes Section of the United States Attorney’s Office for the District of Colorado.
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Delaware Woman Charged in $940,000+ Tax Fraud and Identity Theft SchemeRead the Press Release
39 Count Indictment Alleges The Defendant Defrauded The Irs, The State Of New York, And Her Own Clients
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that an Indictment has been handed down by a federal grand jury charging Dawn Chamberlain, age 36, of Claymont, Delaware, with seven counts of mail fraud (18 U.S.C. § 1341), one count of wire fraud (18 U.S.C. § 1343), eight counts of aggravated identity theft (18 U.S.C. § 1028A), and twenty counts of submitting false claims to the United States (18 U.S.C. § 287). The defendant faces up to 20 years in prison on each count of wire fraud and mail fraud, up to 5 years in prison on each count of false claims, and consecutive 2-year terms of imprisonment on each of the aggravated identity theft charges, in addition to possible fines and restitution.
According to the Indictment, from 2009 through 2012, the defendant acted as a tax preparer in Delaware. She filed false and fraudulent U.S. Individual Federal Income Tax Returns for other people. In the returns, the defendant claimed more than $730,000 in credits to which her clients were not entitled, including the American Opportunity Tax Credit and the Earned Income Tax Credit.
The Indictment further alleges that the defendant caused the refunds generated by the fraudulent federal income tax returns to be deposited into her own bank accounts, and bank accounts of her family members. She returned less than the full amount of the refunds to her clients, converting the remaining proceeds to her personal use.
The Indictment charges that the defendant used her client’s names, dates of birth, and social security numbers to file false and fraudulent New York State Resident income tax returns, without their knowledge. The defendant took advantage of New York’s tax laws, requesting refunds of more than $210,000. The Indictment alleges that the defendant knew or should have known that these clients did not live in the State of New York.
U.S. Attorney Oberly gave the following comment, “This case should send a clear signal during this tax filing season that individuals who file false claims against the United States Treasury will face significant penalties. I find fraud upon the government to be particularly troubling, and I am committed to working with the Internal Revenue Service to prosecute these cases and seek incarceration wherever possible.”
“Individuals who commit refund fraud and identity theft of this magnitude deserve to be punished to the fullest extent of the law,” stated Akeia Conner, Special Agent in Charge, IRS Criminal Investigation. “We, along with our law enforcement partners and the United States Attorney's Office, continue to do our part in protecting the integrity of the tax system and those individuals whose identities were stolen, as well as a monetary loss against the U.S. Treasury."This case is the result of an investigation conducted by the Internal Revenue Service, the United States Postal Inspection Service, and the Social Security Administration, Office of the Inspector General, with cooperation from the State of New York. The prosecution is being handled by Assistant United States Attorney Lauren Paxton, District of Delaware.
The charges in the Indictment are only allegations. The defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Cordell Veterinarian Pleads Guilty to Making False Statements to Defraud BankRead the Press Release
Oklahoma City, Oklahoma – Today, DAVID L. STURGEON, 63, from Cordell, Oklahoma, has pled guilty to making false statements to defraud the Bank of Cordell, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Sturgeon is a large animal veterinarian who operates the Washita Veterinarian Clinic and lives in Cordell, Oklahoma. Sturgeon also bought and sold cattle as a manager partner of 20/20 Cattle and Consulting L.L.C and S&D Cattle L.L.C. According to an Information filed on February 21, 2013, from December 2007 through December 2008, Sturgeon secured several loans based on a revolving line of credit extended by Bank of Cordell. Under the loan agreements, loan advances were to be used by Sturgeon for the purchase of cattle which served as collateral for the loan funds advanced. Proceeds from the sale of the cattle were to be used by Sturgeon to pay off the loans owed to Bank of Cordell. During this same time, Sturgeon had two commodities trading accounts with R.J. O'Brien, a commodities firm located in Chicago, Illinois ("RJO"), that he used to make trades in agricultural commodities.
In 2008, RJO required Sturgeon to make certain deposits in his trading accounts to meet margin calls. During the plea hearing today, Surgeon admitted that on August 6, 2008, he represented to the Bank of Cordell that he needed a loan advance of $36,000 to purchase 70 head of cattle for the purpose of influencing the Bank of Cordell to advance him the loan. However, Sturgeon admitted that the loan was not used to purchase cattle and his statements were falsely made so he could fraudulently divert loan funds to make margin calls on the two RJO commodities accounts.
At sentencing, Sturgeon faces up to 30 years in prison, a fine of up to $1,000,000, and mandatory restitution. A sentencing date will be set by the Court in approximately 90 days.
This case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorneys Ross N. Lillard, III, and Robert J. Troester.
Coatesville Man Faces Additional Charges Related to Alleged Ponzi SchemeRead the Press Release
PHILADELPHIA - Istvan Merchenthaler, 42, of Coatesville, PA, was charged today in a superseding indictment with seven additional counts stemming from an alleged investment fraud scheme. Merchenthaler is now charged with a total of four counts of wire fraud, two counts of aggravated identity theft, four counts of money laundering, two counts of filing false tax returns, and two counts of interstate transportation of stolen property, announced United States Attorney Zane David Memeger.
According to the superseding indictment, from at least about May 2006 to about February 2013, Merchenthaler claimed to be the founder of PhoneCard USA, a company that was purportedly a “premier distribution source” for prepaid phone cards and cell phones. In reality, Merchenthaler operated a “Ponzi” scheme, stealing over $2 million from over 200 investors and using much of these funds for his own benefit and to perpetuate his scheme.
Merchenthaler, who used a number of aliases, approached investors and persuaded them to make investments in PhoneCard USA. In his marketing materials, Merchenthaler claimed that these investments would finance the “exponential growth” of PhoneCard USA and would provide investors with “generous returns” on their investments.
In addition, Merchenthaler falsely claimed that PhoneCard USA had “lucrative contracts” with major retail chain stores “covering territories that span the east coast.” In these materials, and in his communications to investors, Merchenthaler falsely claimed PhoneCard USA had contracts with these major retail chain stores, including Walmart, 7-Eleven, and BJ’s Wholesale Club. In reality, Merchenthaler had no such contracts with these major retail chain stores. Further, Merchenthaler falsely claimed to have friendships with executives at Walmart and 7-Eleven.
According to the superseding indictment, Merchenthaler stole two cars from dealerships while on pretrial release. Merchenthaler is now in federal custody.
If convicted, the defendant faces a maximum possible sentence of 170 years of imprisonment, a $3.5 million fine, 3 years of supervised release, and an $1,400 special assessment. Merchenthaler also faces a mandatory minimum of two years imprisonment.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation Division. It is being prosecuted by Assistant United States Attorney Vineet Gauri.Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Cleveland Man Charged with Engaging in Illicit Sexual Conduct with Children While AbroadRead the Press Release
A Cleveland man was charged with traveling to abroad and illegally engaging in illicit sexual conduct with children, said Mythili Raman, Acting Assistant Attorney General, Criminal Division, United States Department of Justice, and Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Malek M. Al Maliki, Jr., 55, was arrested March 6.
“Protecting children from predators is a priority of my office and the Department of Justice,” Dettelbach said. “We will vigorously go after those who would abuse children, whether they lurk online, travel abroad or engage in human trafficking in our backyard.”
The indictment charges that between on or about August 15, 2010 and November 8, 2010, Al Maliki, a United States citizen, traveled in foreign commerce from the United States to Syria, and engaged and attempt to engage in illicit sexual conduct with John Doe #1, a person under 18 years of age.
The indictment also charges that between on or about August 15, 2010 and November 8, 2010, Al Maliki, traveled in foreign commerce from the United States to Syria, and attempted to engage in illicit sexual conduct with John Doe #2, a person under 18 years of age.
If convicted, the defendant’s sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan and Trial Attorney Bonnie Kane of the Criminal Division’s Child Exploitation and Obscenity Section. The case was investigated by the Department of Homeland Security, Homeland Security Investigations.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Chicopee Man Receives 15 Years for Child ExploitationRead the Press Release
BOSTON - A Chicopee man was sentenced today for attempting to produce sexually explicit images of children.
Joseph Hiersche, 40, was sentenced by U.S. District Judge Denise J. Casper to 15 years in prison to be followed by 10 years of supervised release. In November 2012, Hiersche pleaded guilty to seven counts of sexual exploitation of a child, receipt of child pornography and possession of child pornography.Between March 2010 and March 2012, Hiersche downloaded numerous images and videos of child pornography from the Internet. Using hidden cameras, Hiersche also took videos of nude children with the intent to produce sexually explicit images of the children. Hiersche made these videos in order to send them to a person with whom he had established an online relationship.
“Our duty, as members of law enforcement, is to protect members of society, especially the most vulnerable members of our society, children,” said United States Attorney Carmen M. Ortiz. “Victims of sexual exploitation are robbed of their innocence and of their childhood. We will continue to work relentlessly to ensure that individuals who target children for their own personal satisfaction are investigated and prosecuted.”
United States Attorney Carmen M. Ortiz; Mark G. Mastroianni, Hampden County District Attorney; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; Commissioner William Fitchet of the Springfield Police Department; and Chief John R. Ferraro, Jr. of the Chicopee Police Department made the announcement today. The case was prosecuted by Assistant U.S. Attorney Alex J. Grant of Ortiz’s Springfield Branch Unit.CIA Contractors Settle False Claims Act and<br /> Kickback Allegations for $3 MillionRead the Press Release
The Justice Department announced today that American Systems Corporation, Anixter International Inc., and Corning Cable Systems LLC have agreed to pay the U nited States $3 million to settle allegations that they violated the False Claims Act and the Anti-Kickback Act in bidding on a contract with the CIA.
The settlement announced today resolves claims against these contractors related to a CIA contract awarded to American Systems in early 2009 to provide supplies and services. American Systems teamed with Anixter to bid on the contract with Corning as a supplier. The United States alleged t hat American Systems, Anixter and Corning provided gratuities, including meals, entertainment, gifts and tickets to sporting and other events, to CIA employees and outside consultants in order to influence contract specifications that would favor the three companies in the award of the contract. The settlement also resolves allegations that the three companies improperly received source selection information from a CIA employee to whom they had provided gratuities, and that they had concealed the gratuities prior to award.
“This settlement shows that the United States will protect the integrity of the federal procurement process from the wrongful activities of unscrupulous contractors,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Department of Justice, Civil Division. “Plying government officials with meals and entertainment to gain favorable treatment in the award of federal contracts corrupts the procurement process and will not be allowed.”
“Improper gifts and gratuities paid to government officials are a corrupting influence on government contracts. Combating this type of conduct is a high priority in the Eastern District of Virginia,” said U.S. Attorney for the Eastern District of Virginia Neil MacBride.
“This case clearly reflects that the CIA will respond effectively to allegations of fraud affecting agency programs,” said CIA Inspector General David B. Buckley. “My office treats contract fraud and related employee misconduct as one of our top investigative priorities, and we work closely with agency employees and the Department of Justice to ensure that illegal acts are addressed in an effective manner.”
The allegations resolved by the settlement were initiated by a lawsuit filed in the Eastern District of Virginia under the qui tam, or whistleblower, provisions of the False Claims Act by former Anixter sales representative, William Jones. Under the False Claims Act, private citizens may sue on behalf of the United States for false claims and share in any recovery obtained by the government. Jones will receive $585,000 as his share of the government’s recovery.
This settlement was the result of a coordinated effort by the United States Attorney's Office for the Eastern District of Virginia; the Department of Justice, Civil Division, Commercial Litigation Branch; and the CIA, Office of Inspector General. The claims settled by this agreement are allegations only; there has been no determination of liability.
CIA Contractors Settle False Claims Act and Kickback Allegations for $3 MillionRead the Press Release
United States Alleges Companies Provided Government Employees with Meals and Entertainment to Steer Contract Award
ALEXANDRIA, Va. – The Justice Department announced today that American Systems Corporation, Anixter International Inc., and Corning Cable Systems LLC have agreed to pay the United States $3 million to settle allegations that they violated the False Claims Act and the Anti-Kickback Act in bidding on a contract with the CIA.
The settlement announced today resolves claims against these contractors related to a CIA contract awarded to American Systems in early 2009 to provide supplies and services. American Systems teamed with Anixter to bid on the contract with Corning as a supplier. The United States alleged that American Systems, Anixter and Corning provided gratuities, including meals, entertainment, gifts and tickets to sporting and other events, to CIA employees and outside consultants in order to influence contract specifications that would favor the three companies in the award of the contract. The settlement also resolves allegations that the three companies improperly received source selection information from a CIA employee to whom they had provided gratuities, and that they had concealed the gratuities prior to award.
“Improper gifts and gratuities paid to government officials are a corrupting influence on government contracts. Combating this type of conduct is a high priority in the Eastern District of Virginia,”said U.S. Attorney for the Eastern District of VirginiaNeil MacBride.
“This settlement shows that the United States will protect the integrity of the federal procurement process from the wrongful activities of unscrupulous contractors,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Department of Justice, Civil Division. “Plying government officials with meals and entertainment to gain favorable treatment in the award of federal contracts corrupts the procurement process and will not be allowed.”
“This case clearly reflects that the CIA will respond effectively to allegations of fraud affecting agency programs,” said CIA Inspector General David B. Buckley. “My office treats contract fraud and related employee misconduct as one of our top investigative priorities, and we work closely with agency employees and the Department of Justice to ensure that illegal acts are addressed in an effective manner.”
The allegations resolved by the settlement were initiated by a lawsuit filed in the Eastern District of Virginia under the qui tam, or whistleblower, provisions of the False Claims Act by former Anixter sales representative, William Jones. Under the False Claims Act, private citizens may sue on behalf of the United States for false claims and share in any recovery obtained by the government. Jones will receive $585,000 as his share of the government’s recovery.
This settlement was the result of a coordinated effort by Assistant U.S. Attorneys Gerard Mene, Peter Hyun and Stephen Obermeier of the United States Attorney's Office for the Eastern District of Virginia; the Department of Justice, Civil Division, Commercial Litigation Branch; and the CIA, Office of Inspector General. The claims settled by this agreement are allegations only; there has been no determination of liability.
CH2M Hill Hanford Group Inc. Admits Criminal Conduct, Parent Company Agrees to Cooperate in Ongoing Investigation and Pay $18.5 Million to Resolve Civil and Criminal AllegationsRead the Press Release
The Justice Department, in conjunction with the U.S. Attorney’s Office for the Eastern District of Washington, announced today that Colorado-based CH2M Hill Hanford Group Inc. (CHG) and its parent company, CH2M Hill Companies Ltd. (CH2M Hill) have agreed that CHG committed federal criminal violations, defrauding the public by engaging in years of widespread time card fraud. In order to resolve CHG’s civil and criminal liability, CH2M Hill has agreed to pay a total of $18.5 million, commit an additional $500,000 towards accountability systems, consent to a corporate monitor, and to continue actively cooperating with the ongoing fraud investigation .
Between 1999 and 2008, CH2M Hill had a Department of Energy contract to manage and clean 177 large underground storage tanks containing mixed radioactive and hazardous waste at the Department of Energy’s Hanford Nuclear Site in southeastern Washington (the Tank Farms Contract). The Hanford Site was used for the production of nuclear weapons during World War II and the Cold War. According to the statement of facts agreed to by the United States and CH2M Hill, CHG hourly employees involved in the cleanup routinely overstated the number of hours they worked, and CHG management condoned the practice and submitted inflated claims to the Department of Energy that included the fraudulently claimed hours.
Specifically, CH2M Hill and the United States agreed that CHG’s hourly workers “consistently refuse[d] to perform any overtime work unless that overtime was offered, or ‘called out,’ in 8 hour blocks.” As stated in the agreed statement of facts, “[t]he inability of CHG’s upper management to secure the necessary overtime volunteers for various jobs threatened CHG’s ability to complete various projects linked to the Tank Farms Contract performance incentives. This in turn threatened CHG’s ability to earn certain fees, and therefore profits under the Tank Farms Contract.” According to the agreed statement of facts, the inability to obtain performance based incentives would have directly impacted the personal corporate bonuses of certain members of CHG’s upper management. Consequently, “certain members of CHG’s upper management, certain direct supervisors of the hourly workers, and certain other supervisory personnel, accepted the practice of hourly workers only working until the particular overtime job was completed, leaving Hanford, and falsely claiming a full 8 hours even when the job took less than 8 hours,” according to the agreed statement of facts.
Unfortunately, the widespread time card fraud at CHG was not limited to overtime abuse and had occurred for many years, in some instances even pre-dating the Tank Farms Contact, as stated in the agreed statement of facts. Further the agreed statement of facts provides that, “[c]ertain members of CHG’s upper management, certain direct supervisors of hourly employees, and other certain supervisory personnel, did not discipline, formally or informally, CHG hourly workers for routinely engaging in known time card fraud. In fact, certain of CHG’s direct supervisors of hourly workers engaged in patterns designed to avoid the detection of the routine time card fraud by law enforcement and internal auditors.” In this manner, as CH2M Hill agrees, CHG “knowingly, willfully, and with intent to defraud, facilitated CHG’s hourly workers routinely getting paid for hours they did not work and combined, conspired, and agreed with CHG hourly workers to accomplish the same, all at the sole expense of the citizens of the United States.”
“Contractors owe a duty to the taxpayers to accurately bill the United States for work performed,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Civil Division of the Department of Justice. “This settlement demonstrates that the Department of Justice, working together with its law enforcement partners, will hold contractors accountable for false billing and restore wrongfully taken funds to the Treasury.”
“This sort of systemic fraud is an appalling abuse of the trust we place in our contractors at Hanford and it simply will not be tolerated,” said Michal C. Ormsby, U.S. Attorney for the Eastern District of Washington. “However, we are pleased that CH2M Hill has stepped up and admitted to the criminal conduct of its subsidiary and has agreed to pay back a good faith estimate of what was taken, including criminal proceeds from the conspiracy.” U.S. Attorney Ormsby went on to outline that pursuant to the global agreement, “CH2M Hill has also agreed to take substantial remedial steps going forward including having its remaining subsidiary at the Hanford Site, CH2M Hill Plateau Remediation Company, consent to a corporate monitor for 3 years, and to commit an additional $500,000 towards making sure something like this does not happen again.” U.S. Attorney Ormsby also noted that, “under this global resolution, CH2M Hill will continue its commendable cooperation and help ensure that all individuals who participated in this conspiracy and profited from it will be brought to justice as well.”
“I am pleased with today’s announcement. I would like to express my thanks to the entire team – including Inspector General Special Agents, the United States Attorney's Office, the Department of Justice Civil Frauds Division and the FBI—for their efforts on this investigation,” said Gregory H. Friedman, the Department of Energy Inspector General. “It is essential that Department of Energy contractors be held accountable for effective stewardship of U.S. taxpayer dollars.”
The global resolution consists of CH2M Hill paying $16,550,000 to resolve its civil liability under the False Claims Act. In addition, CH2M Hill entered into a Non-Prosecution Agreement with the United States Attorney’s Office for the Eastern District of Washington to resolve its criminal liability. Under the terms of that agreement, CH2M Hill will refund an additional $1.95 million in wrongfully obtained profits, dedicate $500,000 to foster increased accountability at the Hanford Site, and pay for independent monitoring to ensure that CH2M Hill takes adequate corrective actions. To date, eight individuals have pleaded guilty to engaging in the same time card fraud scheme and conspiracy that CH2M Hill has now admitted CHG itself was a conspirator in.
The civil fraud allegations under the False Claims Act resolved by today’s settlement were initially alleged in a whistleblower lawsuit filed by Carl Schroeder, a former employee of CH2M Hill and one of those who pleaded guilty to the scheme. Under the False Claims Act, private citizens can sue on behalf of the United States and share in the recovery. The act, however, bars whistleblowers from recovering if they were convicted based on their role in the scheme.
This case was handled by the Civil Division of the Department of Justice and the U.S. Attorney’s Office for the Eastern District of Washington, with investigative assistance provided by the Department of Energy Office of Inspector General and the FBI.
The False Claims Act suit was filed in the United States District Court for the Eastern District of Washington, and is captioned United States ex rel. Schroeder v. CH2M Hill, No. 09-cv-5038 (E.D. Wash.).
Barren County Felon and Nine Co-Defendants Sentenced for Operating Sophisticated Marijuana Grow OperationRead the Press Release
– Organizer sentenced to 235 months in federal prison
– Among the largest marijuana indoor grow operations discovered in Western District of Kentucky by Kentucky State Police
– Produced up to ten pounds of marijuana every two weeksBOWLING GREEN, Ky. – Ten defendants charged in one of the state’s largest indoor marijuana grow operations were sentenced this week, in United States District Court, by Chief Judge Thomas B. Russell, to multiple years in prison for their roles in a conspiracy to manufacture and distribute marijuana, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Dallas Norris, age 70, of Barren County, Kentucky, considered the ring-leader of the operation, was sentenced to 235 months in federal prison followed by five years of supervised release for conspiracy to manufacture and distribute marijuana, money laundering and possession of firearms by a convicted felon. Nine of the ten co-defendants were sentenced, as well, for their role in the operation of this sophisticated indoor marijuana grow operation, considered by Kentucky State Police (KSP) to be one of the largest of its kind discovered in the Western District of Kentucky. An initial tip to KSP led troopers to Norris’s Glasgow, Kentucky home, where they discovered 1,267 marijuana plants on November 12, 2011.
“The successful prosecution of this multi-defendant drug production and distribution organization was made possible by a collaborative law enforcement approach,” stated David J. Hale, United States Attorney. “We are grateful for the good work of the State Police, the ATF and the Warren County Drug Task Force. As drug organizations become more sophisticated and often more brazen, we will rely on effective cooperation between federal and state authorities to protect the public and prosecute the offenders. Our communities are safer as a result of these efforts.”
“Kentucky State Police is committed to combating the marijuana drug trade,” says Rodney Brewer, KSP Commissioner. “These enterprises have no limits and further fuel other illicit criminal organizations and their violence.”
The investigation by KSP, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Warren County Drug Task Force revealed that the grow became operational in 2008 and had been producing seven to ten pounds of marijuana approximately every two weeks. Norris was selling the marijuana for $2,500 to $3,000 per pound and that he took elaborate measures to avoid detection of his operation including: illegally tapping the local power company main line to power the grow; and pumping and purifying cave water located on the property to water the extensive grow operation.
The ten co-defendants, charged in a May 16, 2012 federal superseding indictment, all pleaded guilty for their roles in the conspiracy. Josephine Polan of Flagler Beach, Florida to 18 months in prison followed by two years of supervised release; from Wellston, Ohio - Roger L. Goheen to 92 months followed by five years of supervised release, Shelli Goheen to 18 months followed by three years of supervised release, and Dennis Cain Goheen to 24 months in prison followed by three years of supervised release; Darryl G. Newsome, Kimberly Newsome, and Darryl Allen Newsome of Springfield, Ohio to six months in prison followed by six months of home incarceration followed by two years of supervised release; Vanessa Golden of Covington, Kentucky to three years’ probation; and Victoria Kampschaefer of Louisville to three years’ probation. Garry Kampschaefer, of Louisville, awaits sentencing.
In addition to the prison sentence, Norris will forfeit to the United States, a 2006 Ford F-250 truck, property located in Barren County, Kentucky and Jackson County, Ohio, $22,621 US currency, and miscellaneous farm equipment and collectibles. Norris admitted to structuring three transactions with financial institutions between February 28, 2008 and March 12, 2008, by purchasing three cashier’s checks each in the amount of $9,000. Norris used the cashier’s checks and an additional personal payment of $6,114 to purchase the 2006 Ford truck. At the time of his arrest, Norris, a convicted felon, based upon his previous conviction for manufacturing marijuana, was in possession of two firearms.
This case was prosecuted by Assistant United States Attorney Mac Shannon and was investigated by KSP, ATF and the Warren County Drug Task Force.
Bank Robber Pleads GuiltyRead the Press Release
Montgomery, Alabama - On March 6, 2013, Gerrard Dixon, entered a plea of guilty to armed bank robbery and conspiracy to commit an armed bank robbery.
On Friday, November 4, 2011, at approximately 11:42 a.m., Dixon and another individual entered the BancorpSouth Bank located in Fort Deposit, Alabama, and robbed it at gunpoint. The bank surveillance video shows Dixon and another individual, Lee Williams, enter the bank and while Williams holds a customer and employees at gunpoint, Dixon jumps over the counter and takes over $9000 in assorted U.S. currency from two teller drawers. Dixon and Williams then make their escape by a waiting car.
On December 7, 2011, Dixon and Williams entered into an agreement to rob the same BancorpSouth Bank and in furtherance of the conspiracy, obtained guns, an automobile, and returned to Fort Deposit to "case" the bank. Fort Deposit police officers, who had increased patrol on area banks, noticed Dixon, who was operating the vehicle, and Williams, who was the passenger, behaving suspiciously. When the officers attempted to stop them, Dixon fled, taking police on a high-speed pursuit. Dixon eventually crashed his vehicle in Montgomery, and the two fled on foot, but were quickly apprehended by the Montgomery Police Department. Two loaded firearms were recovered near the crash site.
“Those that rob banks put tellers, customers and the public at large in serious danger,” stated U.S. Attorney Beck. “These innocent victims are often traumatized by these bank robberies. My office will continue to prosecute those people who intentionally hurt the public for their own monetary gain.”
Dixon, who is currently serving a sentence of 30 years for the Attempted Murder of a convenience store employee in Montgomery, faces a possible sentence of incarceration of not more than 25 years for the bank robbery and not more than 5 years for the conspiracy, a fine of not more than $250,000, and a term of supervised release of not more than 5 years.
Williams entered an earlier plea to similar charges and is awaiting sentencing at this time.
The case is being investigated by Federal Bureau of Investigation, the Fort Deposit Police Department, the Montgomery Police Department and the Montgomery County Sheriff's Office. This case is being prosecuted by Assistant United States Attorney Susan R. Redmond.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Avon Lake Man Charged with Making A False Statement to the FBIRead the Press Release
A criminal information was filed charging an Avon Lake man with one count of making a false statement to law enforcement, law enforcement officials said.
Kenneth J. Grabowski, 67, was a retired employee of a company identified only as Business 13. He retired in 2003.
As part of the wide-ranging investigation into public corruption in Cuyahoga County, FBI agents tried to determine employees at Business 13 engaged in fraud and commercial bribery with targets of the investigation, including Michael Forlani, the owner of Doan Pyramid Electric, according to the information.
Agents interviewed Grabowski on Nov. 10, 2011, during which time he knowingly and willfully made a material false statement to FBI agents. Grabowski said he was not aware of Forlani or any other Doan Pyramid employee giving case to any Business 13 employee, including Grabowski himself, well knowing at the time that his statement was false, according to the information.
This case is being prosecuted by Assistant United States Attorneys Antoinette T. Bacon, Ann C. Rowland and Nancy Kelley following an investigation by the Federal Bureau Investigation and Internal Revenue Service – Criminal Investigations.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Armed Drug Dealer Sentenced to Fifteen Years in PrisonRead the Press Release
OAKLAND - Quentel Reed was sentenced today to fifteen years in prison for possession of a firearm in furtherance of a drug trafficking crime, United States Attorney Melinda Haag announced.
Reed pleaded guilty on November 1, 2012, to possessing a firearm in furtherance of drug trafficking. According to the plea agreement, Reed admitted that on February 9, 2012, he knowingly possessed approximately 59 grams of cocaine base on his person, packaged for distribution as more than 75 individually wrapped rocks. Mr. Reed also admitted that, in furtherance of his drug trafficking, he was carrying a 9mm firearm fitted with a large capacity magazine and loaded with 17 rounds of ammunition.
Reed, 31, of Oakland, was indicted by a federal grand jury on March 8, 2012. He was charged with being a felon in possession of a firearm and ammunition, possession with intent to distribute cocaine base, and possession of a firearm in furtherance of drug trafficking.
According to filed court documents, Reed was arrested after leading Oakland Police Officers on a foot pursuit through the neighborhood near McClymonds High School in Oakland. As Oakland Police Officers approached Reed standing on the street, he discarded a bag containing the drugs and ran from the officers. During the chase, Reed attempted to get rid of the gun by throwing it over a fence into a vacant lot.
The sentence was handed down by United States District Court Judge Yvonne Gonzalez Rogers.
This case was part of Operation Gideon and an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Oakland Police Department. Operation Gideon, undertaken by federal law enforcement authorities in 2012 to help combat street crime in Oakland and neighboring cities, has resulted in the federal conviction of more than 60 defendants in the Northern District of California.
Alabama Defendants Sentenced for Their Role in a Million Dollar Identity Theft Tax SchemeRead the Press Release
Corey Means was sentenced yesterday to 20 months in prison and Melba Wilson to eight months home detention for their involvement in a million dollar identity theft tax scheme, the Justice Department and the Internal Revenue Service (IRS) announced.
According to court documents, between October 2009 and April 2012, Antoinette Djonret and her co-conspirators used stolen identities to file over 1,000 false tax returns that fraudulently claimed over $1.7 million in tax refunds. Djonret orchestrated this scheme. She obtained stolen identities from multiple sources, including Alabama state databases. She also established an elaborate network for laundering the refund money. Djonret recruited Corey Means, Melba Wilson and others into the conspiracy. Melba Wilson and Corey Means recruited individuals to obtain prepaid debit cards and gave the cards to Djonret. Corey Means also provided addresses to Djonret for the purpose of receiving prepaid debit cards. The fraudulent tax refunds obtained by the conspiracy were directed to these prepaid debit cards and Djonret and her co-conspirators would then use the cards to obtain the proceeds. Djonret was previously sentenced to 144 months in prison for her role in this scheme and for other criminal conduct.
Assistant Attorney General Keneally commended the efforts of Special Agents of IRS - Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Jason H. Poole and Michael Boteler, and Assistant U.S. Attorney Todd Brown, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax .
6 March 2013
US Attorney Wigginton Announces Six-Count Indictment Against Belleville Martial Arts Instructor for Sexual Exploitation of A MinorRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that a United States Grand Jury has returned a six-count indictment against Belleville martial arts instructor, Christopher M. Horton, 20, of Highland, Illinois, charging him with five counts of Sexual Exploitation of a Minor and one count of Attempt Sexual Exploitation of a Minor. The alleged violations took place between on or about May 1, 2012 and February 11, 2013, in Madison and St. Clair Counties. Horton had been charged in a two-count federal Criminal Complaint for Sexual Exploitation of a Minor on February 15, 2013, as part of a joint investigation and prosecution undertaken by the United States Attorney’s Office, the St. Clair County State’s Attorney’s Office, and the Madison County State’s Attorney’s Office. The Court has ordered that Horton be held without bond pending trial.
The offenses charged in the indictment allege that, between on or about May 1, 2012 and February 11, 2013, Horton video recorded himself engaged in sexual activity with three minors and attempted to engage a fourth minor in sexually explicit conduct for the purposes of producing a recording of the conduct.
A federal trial date has not yet been set. If convicted of Sexual Exploitation of a Minor, Horton faces a term of imprisonment of not less than 15 years but not more than 30 years in prison on each count, a fine up to $250,000, and a term of supervised release of not less than 5 years, up to and including, a lifetime of supervision once he is released.
An indictment is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the Madison County Sheriff’s Department, the Federal Bureau of Investigation’s Metro East Cyber Crimes and Analysis Task Force, the Highland, Illinois Police Department and the Belleville, Illinois Police Department. The case is assigned to Assistant United States Attorneys Ali Summers.